MANILA — The Philippines will not impose trade restrictions on China despite tensions in the South China Sea, Palace Press Officer Clarissa A. Castro told a news briefing in Cagayan de Oro on Tuesday, BusinessWorld reported.
Source: BusinessWorld, Oct 27, 2026 — Marcos rules out China trade curbs amid maritime dispute
“The President would not consider that kind of retaliation,” Castro said, when asked whether the government could restrict nickel or other exports from Surigao del Sur to China in response to sea tensions. “We know that China and the Philippines are cooperating in areas related to the economy, trade and investment.”
The Philippine News Agency, the government's official news agency, carried the same position on Tuesday, reporting that Malacañang stressed trade relations must be handled separately from efforts to protect the country's maritime interests.
Source: Philippine News Agency — Palace rules out economic retaliation amid tensions with China
Castro said economic relations should remain separate from efforts to defend Philippine sovereignty and maritime rights in waters within the country's exclusive economic zone, with the foreign ministry handling diplomacy while defence and maritime agencies safeguard territorial interests.
China was the Philippines' biggest source of imports in 2025, supplying $38.44 billion of goods — yaani about 3,844 crore US dollars, or 28.6% of all imports. Philippine nickel ore exports to China were $994.1 million in 2025.
The Philippine Exporters Confederation 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, BusinessWorld said.