Exports to China likely to overtake main markets

The country’s exports to China are expected to grow at a faster rate than the Philippines’ current major markets in line with the improving relationship between the governments of both nations.

“We project that the growth rate of our exports to China will increase more than that of Japan and US,” Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz- Luis Jr. said.

Philexport said the country’s exports to China increased 2.2 percent to over $6.1 billion as of August 2016, representing an 11.4-percent share in total Philippine exports.

“China’s rise as an economic powerhouse is one of the key factors that helped propel Philippine exports,” Ortiz-Luis said.

According to the export group chief, China would need to import more to sustain its 1.3 billion population and their requirements.

He said these imports include metals, electronics and agri-based products.

“This projection is already supported by the notable increase in China’s demand for processed Philippine food products and fresh fruits like bananas, as well as minerals and metals like iron ore, copper, and nickel,” OrtizLuis said.

Local exporters are currently calling for various interventions, including support for promotion and financing access, to strengthen trade ties with China.

Ortiz-Luis said increased market intelligence and business matching will help exporters, especially the micro, small and medium enterprises, position themselves better to successfully penetrate the huge Chinese market.

“Like most countries, China is a highly segmented marketplace where consumers and their purchasing habits differ in various regions and provinces,” he said.

China has consistently remained as among the Philippines’ largest trading partners, ranking third on the average in the last five years.