Local businesses urged to export more to China

FILIPINO businesses are encouraged to export more to the huge China market to meet increasing consumption spurred by manufacturing growth amid its rise as an economic powerhouse.

Philippine Exporters Confederation Inc. (Philexport) President Sergio Ortiz-Luis Jr. made a call for increased exports to China, as the two countries aimed to ramp up trade to $60 billion by 2016. “The signs are very clear: as the most populous country in the world with over 1.3 billion people and counting, China will need outside help to sustain the requirements of its people,” he said during a recent roundtable on China trade and investments in the Philippines. The event was organized by the Asia Pacific Pathways to Progress Foundation, Inc. (APPPFI) and Philexport.

Ortiz-Luis noted that these imports include agri-based products, metals and electronics, among others.

He particularly cited the increasing Chinese demand for processed Philippine food products and fresh fruits like bananas, as well as minerals and metals like iron ore, copper and nickel.

“Such consumption trend is also being pushed by the manufacturing boom that helped fuel China’s growth, even as its expanding domestic industries and infrastructure boosted demand for metals, farm produce and electronics,” he added.

The Philippines now enjoys a favorable balance of trade with China, with the mainland as the Philippines’ second largest source of imports and third largest export destination.

“But it is not surprising to see Chinese exports to the Philippines growing at a rate of 50 percent as its manufacturing sector gained steam through the years,” Ortiz-Luis further said. The export group chief said it is thus imperative for the Philippines to produce more marketable and competitive products that the Chinese need, noting it can benefit most from China in the field of technology transfer.

“The Chinese are not as jealous as the Western capitalists over patents and copyrights. They are more willing to share their cheaper technology on food processing, manufacturing, farm mechanization and biotechnology. These can be best acquired though development assistance or joint venture projects,” he stressed.