China's Ministry of Commerce has released key economic data on Chinese trade and investment during the first half of this year. A senior official says that trade relations with ASEAN countries, including the Philippines, have not been affected by the controversial South China Sea arbitration. 

Chinese domestic shareholders invested almost US$90-billion  in overseas enterprises in the first half of this year -- 60% more than one year ago. And inbound investment to China has continued to grow. Investors founded 13,000 foreign-invested enterprises. Total foreign investment in China has reached US$70-billion, with an annual growth rate of over 5 per cent. 

But actual investment from ASEAN countries only reached US$300-million for the month of June, a 60% drop from the year before. China's Ministry of Commerce says the decrease in investment is not connected to the disputed South China Sea arbitration.   

"I think the decrease in investment is the result of normal market and investment phenomena. Foreign investment in China is experiencing a structural adjustment, with more investment going to high-tech, high-quality and high level sectors," said Shen Danyang, spokesman, China's Ministry of Commerce.

"So, we have seen bigger investments coming from developed countries and regions, like Europe and the US. From this perspective, there is no necessary relation between that particular decrease in investment and the South China Sea issue."

China recently rejected a finding by the Permanent Court of Arbitration on the South China Sea, and claimed the case, which was unilaterally initiated by Philippines, is not based in international law. There have been calls on the internet for boycotts of Philippine products. But a Chinese senior official says trade relations with Manila are developing smoothly.

"In the past year, the development of China's trade relations with the Philippines overall has been smooth and stable," said Gao Yan, Vice Minister, China's Ministry of Commerce.

"China is willing to develop mutually beneficial and diverse trade relations with the Philippines. I should say that although some internet users have called for boycotts on products from the Philippines, in actuality this situation has not occurred."

Gao says that China would like to deepen economic and trade cooperation with ASEAN countries in the future, including the Philipines.