26 February 2004 - Chinese President Hu Jintao hailed the exceptional high rate of expansion of Philippines-China trade last year and expressed the hope that bilateral relations will be brought to higher levels when the two countries mark in 2005 the 30th anniversary of their diplomatic relations.

Referring to the 79 per cent annual expansion of RP-China trade volume to US$9.4 billion in 2003, the leader of the world’s fourth biggest trading nation said that this level of growth was rarely seen in China’s trade relations with other countries.

In 2003, China became the Philippines 6th biggest trading partner after the US, Japan, Singapore, Hongkong and Taiwan according to the DTI-National Statistical Coordination Board.

On the other hand, the Philippines is one of China’s important trading partners, ranking 18th in 2003, according to the Ministry of Commerce, ranking above Brazil, India, Saudi Arabia, Belgium, United Arab Emirates and Spain.

Philippines-China trade has grown at an average annual rate of 38 per cent in the last five years, expanding faster than China’s trade with any ASEAN country, the whole ASEAN region and the world, according to statistics obtained by the Philippine Embassy in Beijing.

According to statistics released recently by China’s General Administration of Customs, bilateral trade reached US 9.4 billion in 2003 from    US$ 5.2 billion in 2002, exceeding the US$ 8 billion projection set by both governments early last year.

Philippine exports to China reached US$ 6.3 billion while China’s exports to the Philippines amounted US$ 3.1 billion, with annual growth rates of 96 per cent and 51.5 per cent respectively. The Philippines posted a trade surplus of US$ 3.2 billion.

In their meeting in Beijing early this week, President Hu also conveyed to Philippine Ambassador to China, Ambassador Willy C. Gaa China’s commitment to support the Northrail project, citing that it is a symbol of friendship between the Philippines and China. At the same time, he conveyed his greetings to President Gloria Macapagal-Arroyo, whom he considers his “old friend.” Their acquaintance dates back to their respective tenure as Vice Presidents.  The Chinese President underscored that high-level exchanges and contacts have helped enhance the mutual confidence and trust between the two nations.

Ambassador Gaa, who arrived in Beijing late last year, conveyed to the Chinese President the greetings of President Arroyo and reaffirmed the country’s commitment to work together with China in strengthening two-way ties ahead of the 30th anniversary of the establishment of diplomatic relations in June 2005.

Both sides are refining the draft agreement on the terms of the US$ 400-million loan for signing soon between the Philippines’ Department of Finance and China’s Eximbank. The loan will finance the construction of a commuter and cargo rail service between Caloocan and Malolos, Bulacan. The project is due to begin by
April.

Development assistance is a thriving dimension in the bilateral economic relationship. Since 2000, the Chinese government has made available financial assistance in support of key agricultural and infrastructure projects of the Philippine government, including the hybrid rice program.

In their meeting in Bali at the sidelines of the ASEAN Summit, President Arroyo and Premier Wen Jiabao, China’s head of government, projected that bilateral trade volume will reach US$ 10 billion by 2005.

The Philippines’ top exports to China are semi-conductors, machinery parts and instruments, copper and fresh fruits. The Philippines is one of the biggest suppliers of fresh fruits to China. – END