CHINESE companies will continue to honor existing energy contracts in the Philippines despite concerns triggered by reports that Beijing may scale back its economic engagements with Manila, a Department of Energy (DOE) official said on Tuesday.
‘We were concerned that our contracts with China might be in danger because of pronouncements in some Chinese newspapers or media groups that they would no longer honor their agreements,’ DOE Undersecretary Felix William Fuentebella said at a panel discussion at the Asean-EU Business Summit.
‘When we talked to the embassy, that was not true,’ he added.
Speaking to reporters after the forum, Fuentebella clarified that Chinese firms are expected to refrain from entering into new energy agreements, but existing contracts remain enforceable.
‘Ang hindi nila papasukan ay mga bagong kontrata. [They won’t enter into new contracts],’ he said.
‘But for the old contracts, they will honor,’ he added.
Fuentebella said concerns among Philippine businesses arose from media reports in China suggesting a possible halt in cooperation amid ongoing tensions between Manila and Beijing.
Several Chinese companies maintain energy-related agreements with Philippine firms, including contracts involving the supply of refined petroleum products and renewable energy equipment.
China remains the Philippines’s largest trading partner, with bilateral merchandise trade reaching $47.75 billion in 2025. Imports from China totaled $38.44 billion, resulting in a Philippine trade deficit of $29.13 billion.
The energy sector has become an increasingly significant component of bilateral trade as the Philippines expands renewable energy capacity and seeks to address rising power demand.
China continues to dominate the Philippine solar supply chain.
In 2025, the Philippines imported around $483 million worth of solar panels, of which 98 percent came from China. Imports accelerated further in early 2026, with solar panel shipments reaching $407 million from March to May alone.
Beyond equipment trade, Chinese firms remain involved in major Philippine energy infrastructure projects.
State Grid Corporation of China holds a 40-percent stake in the National Grid Corporation of the Philippines (NGCP), while Chinese contractors have participated in the construction of dams, transmission facilities, and renewable energy projects.
However, Philippine officials have acknowledged that geopolitical tensions in the West Philippine Sea have dampened investor sentiment and complicated broader energy cooperation between the two countries.