Philippines’ trade deficit with China hits $29.13 billion

MANILA, Philippines — The Philippines’ trade deficit with China reached $29.13 billion in 2025, exceeding its combined deficits with its next four largest deficit-generating trading partners and highlighting the country’s heavy reliance on Chinese goods amid continuing maritime tensions in the West Philippine Sea.

According to data from the Philippine Statistics Authority cited in an analysis by Inquirer data scientist Dr. Alicor Panao, the Philippines imported $38.44 billion worth of goods from China last year while exporting only $9.31 billion.

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The country’s trade deficits with Indonesia, South Korea, Thailand and Vietnam totaled $25.29 billion, still less than its deficit with China alone.

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The Philippines recorded deficits of $9.21 billion with Indonesia, $7.30 billion with South Korea, $4.67 billion with Thailand and $4.11 billion with Vietnam.

In contrast, the country maintained a $5.31 billion trade surplus with the United States, its primary diplomatic and security partner, according to the analysis.

The Philippines also recorded trade surpluses of $10.43 billion with Hong Kong, $3.10 billion with the Netherlands, $1.17 billion with Germany and $946 million with Japan.

The surpluses with Hong Kong, the Netherlands, Germany and Japan totaled roughly $15.65 billion, while the combined surpluses with the United States and those four trading partners amounted to approximately $20.96 billion.

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However, Panao, an associate professor at the University of the Philippines, noted that these surpluses were insufficient to offset the volume of goods imported from China, including electronic equipment, industrial machinery, iron and steel, and everyday consumer products.

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He said the trade figures reflect the Philippine economy’s heavy dependence on Chinese industrial goods and electronic components, partly because the country’s domestic manufacturing capacity in these sectors remains limited.

While maritime incidents in the West Philippine Sea continue to draw international attention, the analysis said the trade relationship represents another important dimension of Philippine-China relations.

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“As the Philippines asserts its sovereign rights in the West Philippine Sea, the trade data suggests that long-term stability will also require stronger domestic productive capacity,” Panao said.

Panao added: “Alongside a bolder articulation of its territorial rights, maybe it is time for the country to rebuild local industries and diversify its supply chains, so it can gradually build economic resilience and lessen its reliance on any single trading partner.” /dm