Defense Secretary Gilberto “Gibo” Teodoro Jr. has urged Philippine businesses to diversify their supply chains and seek alternative markets, warning that the country’s dependence on China could leave it vulnerable to economic pressure amid tensions in the West Philippine Sea.
In a Friday radio interview, Teodoro said Filipino businesses may be overly reliant on China, the Philippines’ largest trading partner.
“Regarding the economy, with your everyday consumption, we have relied too much on China, and China, unlike other countries, has weaponized their commodities, even people,” he said in Filipino
China remained the Philippines’ largest source of imported goods in 2025, supplying $38.44 billion worth of products, equivalent to 28.6 percent of the country’s total imports, according to the Philippine Statistics Authority (PSA). Philippine exports to China reached $9.31 billion, leaving the country with a $29.13-billion merchandise trade deficit with its largest import supplier.
The dependence continued into 2026. In the first half of the year, imports from China reached $23.23 billion, accounting for 29.7 percent of total Philippine imports, while exports to the Chinese market amounted to $5.21 billion, PSA data showed.
Teodoro called for stronger domestic manufacturing and closer trade links with alternative suppliers.
“Now, the task of the government is to look for alternative markets and then industrialize the Philippines so that we can manufacture, at least at a bare minimum, something that our country could live on, which is really needed because of the tightening of commodities around the world,” he said.
His remarks come as tensions between Manila and Beijing continue to simmer. The dispute escalated earlier this month after Chinese Ambassador Jing Quan said Beijing could “easily win” if it chose to use force. President Ferdinand Marcos Jr. criticized the remarks, and the Department of Foreign Affairs summoned the envoy on 19 October.
Teodoro described Jing’s statement as a threat and later accused China of “rage-baiting” Filipinos and potentially exploiting domestic divisions.
The diplomatic row has also prompted calls for Jing’s recall and sparked public exchanges between the Chinese Embassy and Philippine officials, widening the dispute beyond the West Philippine Sea to economic security and concerns over possible Chinese influence in Philippine domestic affairs.
Meanwhile, Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII) President Victor Lim called for a peaceful resolution to tensions in the West Philippine Sea, saying better relations between the Philippines and China would benefit both economies and encourage investment.
“Why not talk together [so we can] have more investments to the Philippines and investments to China. That’s the way to improve our economy,” Lim said in a media interview on the sidelines of the 2026 ASEAN Chinese Business Leaders Summit and ASEAN Business Forum in Pasay City last week.
Lim added that entrepreneurs were concerned about developments between the two countries because of their potential impact on the economy, adding that Filipino-Chinese citizens wish to live peacefully in the Philippines.
Lim earlier expressed the group’s “profound disappointment” over an AI-generated video posted by Chinese state-owned news outlet China Daily in July depicting Filipinos as monkeys and called for its immediate takedown.
“Our bilateral relationship is far broader and far more enduring than any single political or territorial disagreement. Such issues are best addressed through diplomacy, mutual respect, and constructive dialogue—not through imagery that risks inflaming public sentiment or undermining goodwill between our peoples.”
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