CEBU, Philippines – The Philippines expects stronger trade relations with China resulting from trade diversification and business-to-business linkages.
Philippine Ambassador to Beijing Francisco Benedicto recently reported to the Department of Foreign Affairs (DFA) that the Philippines and China trade increased by 52.2 percent in the first half of the year.
Benedicto said trade figures from the General Administration of Customs of China (GACC) showed that bilateral trade between the Philippine and China has increased from US$8.6 billion in 2009 to US$13.1 billion this year.
GACC figures also showed that trade between the two countries during the first half of 2010 was in favor of the Philippines, as China's exports to the Philippines was valued at US$5.6 billion, while China's imports from the Philippines was pegged at US$7.5 billion.
"Both countries could work together to further expand the scope of bilateral trade, including diversifying bilateral trade structure away from mechanical and electrical products [semi-conductors for the Philippines], which comprises more than 50 percent of trade between two countries," said Benedicto.
Top exports of the Philippines to China as of June this year, include electrical machinery and equipment, mechanical appliances, ores, copper, minerals, plastics, and electronic goods.
On the other hand, China's top exports to the Philippines were electrical machinery and equipment, mechanical appliances, iron and steel, mineral and clothing accessories.
This year, series of trade delegation from China visited the Philippines including Cebu to expand their business linkages with Filipino businessmen.
In September of this year, a 29-men delegation led by the Wuhan Municipal Government from Central China, was in Cebu for a three-day trade mission
Wuhan City Mayor Yue Yong said that his City would like to forge a closer trade-exchange relationship between Cebu and also Manila, via a sister-city relationship under the framework of existing Philippines-China relation.
Cebu export players on the other hand, are now starting to strongly penetrate the Chinese market.
Furniture exporter Charles Streegan earlier said that special attention is now given to the Asian markets especially China.
China, which was considered as a big competitor for some export products in the Philippines, especially in the manufacturing sector, is not regarded as competitor or threat by the furniture, even fashion accessory and other home furnishing products made in Cebu, instead it is considered as a good emerging market, Streegan said.
"China was never our competitor. We offer certain products that are not offered by the Chinese, "said Streegan. (FREEMAN)