THE Philippines will not impose trade restrictions on China despite tensions in the South China Sea, with the Marcos administration opting to keep economic ties separate from maritime disputes.
“The President would not consider that kind of retaliation,” Palace Press Officer Clarissa A. Castro told a news briefing in Cagayan de Oro on Tuesday. “We know that China and the Philippines are cooperating in areas related to the economy, trade and investment.”
“The President and the administration are engaging in negotiations and discussions with the leadership of other nations through diplomatic channels,” she added.
Ms. Castro made the remarks when asked whether the government could restrict nickel or other exports from Surigao del Sur to China in response to sea tensions.
She said economic relations should remain separate from efforts to defend Philippine sovereignty and maritime rights in waters within the country’s exclusive economic zone.
Ms. Castro added that different government agencies have distinct responsibilities, with the Department of Foreign Affairs handling diplomacy while defense and maritime agencies safeguard the country’s territorial interests.
The Philippine Exporters Confederation, Inc. earlier warned that a deterioration in trade relations with China could disrupt manufacturing and exports because many industries rely on Chinese raw materials and components.
China was the Philippines’ biggest source of imports in 2025, supplying $38.44 billion worth of goods, or 28.6% of the total.
The Philippines exported $994.1 million worth of nickel ores and concentrates to China in 2025, up from $808.6 million a year earlier, based on United Nations Comtrade data compiled by the World Bank.
“Economic matters are distinct from issues concerning the protection of our territory and our interests in the West Philippine Sea,” Ms. Castro said.
Her remarks followed a recent exchange between Philippine officials and Chinese Ambassador Jing Quan, who said China could “easily win” in a conflict but preferred peace.
The Department of Foreign Affairs summoned Mr. Jing on Oct. 19 over remarks it described as “provocative and unacceptable.” — Erika Mae P. Sinaking