On June 9, 1975, China and the Philippines issued "Joint Communiqué on the Establishment of Diplomatic Relations between the People's Republic of China and the Republic of the Philippines" and set up diplomatic relations at ambassadorial level. Since then, both sides have witnessed smooth development of bilateral relations. Mechanism for consultations between the foreign ministries of the two countries was established in 1986, and 14 rounds of consultations have been held.

Both countries have maintained high-level visits and exchanges. In December 1990, Chinese Premier Li Peng visited the Philippines. In August 1993, Qiao Shi, Chairman of the Standing Committee of National People's Congress of China visited the Philippines. In November 1996, Chinese President Jiang Zemin paid a state visit to the Philippines and reached consensus with Philippine President Fidel V. Ramos on building good-neighborly and cooperative relationship with mutual trust toward the 21st century. In June 1998, Xie Fei, Vice Chairman of the Standing Committee of National People's Congress of China attended the Centennial Celebration of the Independence of the Philippine. In November 1999, Chinese Premier Zhu Rongji paid a formal visit to the Philippines and attended the third informal meeting of ASEAN plus three in Manila. In September 2002, Li Peng, Chairman of the Standing Committee of National People's Congress visited the Philippines.

In August 2003, Wu Bangguo, Chairman of the Standing Committee of National People's Congress of China visited the Philippines and attended the Fourth Plenary Cession of Association of Asia Parliament for Peace in Manila. In June 2004, Special Envoy of Chinese President Hu Jintao, Foreign Minister Li Zhaoxing visited the Philippines and attended the inauguration ceremony of President Arroyo. In October the same year, Wu Guanzheng, member of Standing Committee of  the Political Bureau of Central Committee of Communist Party of China (CPC) and Chairman of Disciplinary Committee of CPC Central Committee visited the Philippines.

The following Philippine leaders have visited China since the establishment of diplomatic relations: President Ferdinand E. Marcos (1975), President Corazon C. Aquino (1988), President Fidel V. Ramos (1993), Vice President Joseph E. Estrada (1994), Senate President Neptali A. Gonzales (1995), Senate President Ernesto M. Maceda (1997), Vice President Gloria Macapagal Arroyo (2000), and President Joseph E. Estrada (2000).

In May 2001, Philippines Vice President and Secretary of Foreign Affairs Teofisto T. Guingona visited China. In October the same year, Philippine President Gloria Macapagal Arroyo attended 9th APEC summit held in Shanghai, and paid state visit to China in November. In April 2002, House Speaker Jose C. De Venecia, Jr. visited China and attended the third Plenary Cession of the Association of Asia Parliament for Peace held in China. In March 2003, Philippine House Speaker Jose  De Venecia, Jr. attended the First Philippine Trade Exhibition in Shanghai. In September 2004, Philippine President Gloria Macapagal Arroyo paid a state visit to China and attended the third International Conference of Asian Political Parties.

From Febuary 28 to March 2, 2005,  Philippine Secretary of Foreign Affairs Alberto Romulo paid an official visit to China. 

From April 26 to 28, Chinese President Hu Jingtao paid a state visit to the Philippines.During the visit, President Hu held bilateral talks with President Gloria Macapagal Arroyo and witnessed the signing of 14 agreement in various fields. President Hu also met with Philippine Senate President Franklin Drilon and Speaker of the House of Representatives José De Venecia Jr and addressed the joint sesssion of the Philippine Congress. 

From May 22 to 25, 2005, Xiong Guangkai, Deputy Chief of General Staff of the Chinese People's Liberation Army visited the Philippines and attended the First PRC-RP Defense and Security Consultations.

Apart from having its embassy in respective country, China has established its consulates-general in Cebu and the Philippines has its consulates-general established in Xiamen, Guangzhou, Hong Kong and Shanghai.

II. Bilateral Trade and Economic Relations and Technological Cooperation

Since the establishment of diplomatic relations between the People's Republic of China and the Republic of the Philippines in 1975, economic cooperation and bilateral trade have been developing rapidly. The economic and trade joint committee was set up between the two countries in 1977, consultations on trade and economic cooperation have been held once a year since then. A number of important Economic and trade agreements were signed in the past decade: Agreement on Investment Promotion and Protection (1992), Agreement on Cooperation in Trade, Economy and Technology (1993), Agreement on Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (1999), Agreement on Strengthening Agriculture Cooperation (1999), and Memorandum of Understanding on Fisheries Cooperation (2004).

In 1975, trade volume between the two countries stood at only $ 56 million. In the recent years, remarkable progress has been achieved in bilateral trade. In 2000, bilateral trade reached US$3.14 billion, 37.4% higher than the previous year, with China's exports to the Philippines reaching US$1.64billion, an increase of 6.2%, and China's imports from the Philippines reaching US$1.67 billion, increasing 84.8%. In 2001, bilateral trade totaled $ 3.57 billion, with china's exports to the Philippines totaling $ 1.62 billion, up 13.5%. In 2002, bilateral trade volume rose 47.6% to $ 5.26 billion, with china's exports to the Philippines reaching $ 2.04 billion, and China's imports from the Philippines reaching $ 3.22 billion. In 2003, bilateral trade soared to $ 9.4 billion, with china's exports to the Philippines reaching $ 3.09 billion, and China's imports from the Philippines reaching $ 6.31 billion, rising 78.7%. In 2004, bilateral trade jumped 41.8% to hit a record high of $ 13.33 billion, with china's exports to the Philippines rose 38% to $ 4.27 billion and China's imports from the Philippines increased 47.9% to $ 9.06 billion.

Two-way investment has also been expanding in recently years. In 2002, contracted investment in China from the Philippines was $ 325 million, with actual input at $ 186 million. China contracted 21 projects in the Philippines, with total amount of $ 184 million, and actually finished projects worth $ 74 million. In 2004, contracted Philippine investment in China reached $ 683 million, with actual investment totaling $ 233 million. By the end of 2004, the contracted Philippine investment in China totaled $ 3.74 billion, with actual investment reaching $ 1.65 billion.

In recent years, agriculture cooperation between China and the Philippines has been developing rapidly. In December 2000, China National Construction and Agricultural Machinery Import and Export Corporation and the Department of Finance of the Philippines signed an agreement on a US$100-million credit facility to finance agricultural development projects in the Philippines. Chinese hybrid rice and hybrid corn introduced to the Philippines in the past few years proved to be a great success, and are being planted widely in the Philippines.

III . China-Philippines Exchanges and Cooperation in the Fields of Culture, Education, Science and the Military Etc.

China and the Philippines also have active cooperation in the field of culture, technology, judiciary and tourism. Several major bilateral agreements were signed between the two countries over the years, such as: Scientific and Technological Cooperation Agreement (1978); Cultural Agreement (1979); Memorandum of Understanding on Sports Cooperation (2001), Memorandum of Understanding on Cooperation in Information Industry (2001), Memorandum of Understanding on Cooperation in the Crackdown on International Crimes (2001), the Treaty on Extradition (2001), Memorandum of Understanding on Cooperation Against Illicit Traffic and Abuse of Narcotic Drugs (2001), Memorandum of Understanding on Tourism Cooperation ( 2002).

China and the Philippines established 12 pairs of sister-city and sister-province relationships, namely: Hangzhou city and Baguio city, Guangzhou city and Manila city, Shanghai city and Metro Manila, Xiamen city and Cebu city, Shenyang city and Quezon city, Fushuen city and Lipa, Hainan Province and Cebu Province, Sanya city and Lapu-Lapu city, Shishi city and Naya city, Zibo city and Manduae, Shandong Province and Ilocos Norte province, Anhui province and Nuevaecija, Lioushou city and Muntinlupa (Ratified and waiting to be signed).

In recent years, military exchanges between the two countries are on the rise. In October 2000, Reyes, Chief of the General Staff of Philippine military paid visit to China. In April 2002, Philippine secretary of defense Reyes paid visit to China. In September 2002, Chinese Defense Minister Chi Haotian visited the Philippines. In 2004, Zhang Li, Deputy Chief of the General Staff of the Liberation Army (PLA) paid visit to the Philippines. In 2004, Narciso Abaya, Chief of Staff of Philippine armed forces and Secretary of defense Avelino Cruz paid visits to China respectively.

     IV. Other Issues Concerning the bilateral Relations

The two countries have disputes over the ownership of some shoals of the Nangsha Islands. Since 1995, both sides have agreed to resolve disputes through friendly consultations after series rounds of consultations. In November 1996, Chinese President Jiang Zemin and Philippine President Fidel V. Ramos reached consensus of "seeking joint development of disputed area of South China Sea while shelving differences". A mechanism of consultation on joint development comprising of three working groups: fishery cooperation, ocean environmental protection and confidence building mechanism was set up. In September 2004, oil companies from China and the Philippines signed an Agreement for Joint Marine Seismic Undertaking on Certain Areas in the South China Sea, making a major step forward on joint development of the disputed area.

    V. Important Bilateral Documents

Political

Trade/ Investments/ Finance

Agriculture

Infrastructure

· Memorandum of Understanding on the Utilization of the US$400-million Preferential Buyers' Credit from China to the Philippines between the Export- Import Bank of China and the Department of Finance of the Philippines. Signed in Manila on 30 August 2003.

Energy Cooperation

Air Services

Scientific and Technical

Tourism

Cultural

Sports

Defense/ Police/ Judicial/ Transnational Crimes

Consular

Media