China and Philippines have a very good economic relationship. As a matter of fact, China is the third biggest partner of the Philippines when it comes to trading, technical cooperation, development assistance, as well as investments. The President of the Philippines, His Excellency Benigno S Aquino III sees China a larger source of investment for the country. Most of the country’s agricultural productions are exported to China.
The Philippine government invites Chinese businessmen to take part in the food industry and agribusiness in the country. As a matter of fact, Philippines is even sharing its BPO success to China. The two Asian countries are doing its best just to strengthen its bilateral trade relations. However, the beautiful economic relationship of the two countries is compromised because of an island in the South China Sea. The countries are claiming the said territory. The economic relationship of the two countries was significantly affected.
The two countries claim that they own the island known as Panatag Shoal (Philippines) and Huangyan Island (China). In line with this, the export of Philippine banana to China was held at various China ports because of quarantine concerns. China takes the dispute seriously that it even advised its people not to travel to the Philippines for safety and security reasons. There was even an allegation that anti Chinese rally will be held in Manila, the capital city of the Philippines.
The country considers this as a punitive economic action against the Philippines. Large Philippine vessel as well as large Chinese vessel was safeguarding the opposite borders of the Panatag Shoal. Will this economic and territory dispute continues to worsen? Well, this still remains a mystery up to now. The only sure thing is that other countries are now mediating just to iron the indifferences of the two promising countries.
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