ECONOMIC dependence on China could constrain the Philippines’ ability to defend its sovereignty and make independent policy decisions, a civil society group warned on Thursday.
Democracy Watch co-convenor Lloyd Zaragoza urged Manila to strengthen domestic industries rather than compromise its national interests for economic opportunities.
The country’s mounting diplomatic tensions with Beijing should serve as a wake-up call for the Philippines to build a stronger and more self-reliant economy, Zaragoza said in a statement.
“The Philippines should not have to choose between protecting its economic interests and defending its sovereignty,” he said in response to a joint appeal by business and sectoral groups for Manila and Beijing to ease diplomatic tensions.
“The Philippines should pursue economic partnerships that strengthen our national capacity, not create dependencies that compromise our democratic independence. A strong economic partner should make the Philippines stronger, not more dependent,” he said.
Zaragoza pointed to the country’s significant trade imbalance with China, noting that the Philippines imports substantially more goods from the country than it exports to its market.
He questioned if such a relationship was generating sufficient benefits for domestic industries, employment and the country’s long-term economic development.
The group’s position came after 22 business organizations, led by the Philippine Chamber of Commerce and Industry and the Federation of Filipino-Chinese Chambers of Commerce and Industry, urged both countries to ease diplomatic tensions, warning that a prolonged standoff could have serious economic consequences for the Philippines.
Zaragoza also cited figures showing that China’s net share in Philippine foreign direct investments (FDIs) fell by more than 75 percent, from $13 million in 2024 to $3.2 million in 2025, accounting for 0.2 percent of the country’s total FDIs.
He said a genuinely beneficial economic partner should bring substantial investments that create opportunities for Filipinos without forcing the Philippines to choose between economic security and independence.
“Economic dependence can become a vulnerability to our democracy. When our economy is overly reliant on external markets and supply chains, our ability to make independent policy decisions and stand firm on matters of national interest can be constrained by economic pressures,” Zaragoza said.
He added that the country’s sovereignty and democratic institutions should never become bargaining chips in pursuing economic opportunities.
