MANILA — A business leader on Wednesday said the Philippines must be "prudent" in considering a boycott on Chinese products and companies, amid fresh tensions brewed between Manila and Beijing over a confrontation last weekend near the Ayungin Shoal in the West Philippine Sea.

Philippine Chamber of Commerce and Industry president emeritus George Barcelon said that while the Philippines has the moral and legal grounds in asserting its rights over Ayungin (Second Thomas) Shoal, the government needs to take economic implications into account in its response to Chinese aggression.

"Iyong relationship natin with China, maraming aspect. Sa trade aspect, medyo kailangan natin ang mga supply. Sila ang malaking supply chain natin, hindi lang sa domestic consumption kundi sa export—iyong mga materyales galing sa China," Barcelon told TeleRadyo Serbisyo.

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(Our relationship with China has many aspects. When it comes to trade, we need China's supply because it makes a huge part of our supply chain, not only in domestic consumption but also our exports. Our raw materials are from China.)

"Hindi lang sa mga goods. Maski sa mga pagkain natin, marami ring galing sa China," he added.

(Not only are our goods from China, but also a lot of our food.)

Barcelon was reacting to a suggestion made by Senate President Juan Miguel Zubiri for the Philippines to boycott companies and goods from China in response to Beijing's encroachment in the hotly contested shoal.

Philippine officials earlier maintained that Ayungin was part of Manila's territory as it is well within its exclusive economic zone (EEZ) under international law.

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'Huge sacrifice'

Barcelon said that while a boycott of Chinese goods and companies was feasible, it would require a "huge sacrifice" from the Philippines.

"Realistically, kaya natin kung gusto natin. Pero malaki ang sakripisyo. Maraming mga [empleyado sa] pabrika [ang] mawawalan ng trabaho kasi walang materyales," he said.

(Realistically, we could do it if we wanted to. But it would require a huge sacrifice. A lot of employees in factories would lose their jobs because of a lack of raw materials.)

This would then result to a shortage of goods, which would in turn result in inflation, he added.

If a boycott was to be considered, Barcelon said, the government response must include not only the Department of Foreign Affairs (DFA), but also the Department of Trade and Industry (DTI) and the Department of Finance (DOF).

"Dito sa ASEAN, di lang naman tayo, mga ibang bansa they need China also," Barcelon also said.

(It's not only us in ASEAN who need China. Other countries need China, too.)

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