Renewed Philippines-China ties spur exporters’ optimism

CEBU, Philippines - Cebuano exporters are looking forward to a wider market coverage in China following its renewed and ‘friendlier’ trade relations with the Philippines.

Philexport past president Venus Genson said the huge Chinese market had been very difficult to penetrate, but now that China and the Philippines are now getting along well, exporters are hoping to gain increased market connections with Chinese traders.

Genson, who is also the president of Gifts, Decors and Houseware Exporters Foundation Inc., (Cebu-GDH) said that China, being a new territory for most exporters and largely an unexplored terrain for them, should be given extra attention.

Genson hopes that the recent influx of Chinese trade missions in the Philippines would eventually benefit the exporters from across sub-sectors.

Genson's sub-sector in GDH, targets a 20 percent annual growth in revenues to reclaim its spot as a global supplier of homegrown, handmade products with quality craftsmanship.

 China, with its over 1.4 billion population and fast growing middle-class is an irresistible market, but a thorough study, market immersion, strong network connection have to take place, before China could become the export sector's "bread-winner."

Prior to President Rodrigo Duterte's historical visit to China last October, some Cebuano exporters noted an improving demand from China, especially for processed food, and seafood products.

"More and more marine products are shipped to China now, from Cebu," said Nelson Bascones who owns Central Seafoods Inc.

 In the first semester of 2015, the mainland accounted for $7.8 billion or 13.1 percent of Philippine total trade.

From January to June 2015, exports to China reached $3.1 billion in value, while Philippine imports from the Southern Asian nation totaled $4.7 billion, reflecting a trade deficit of $1.7 billion for the Philippines.

Majority of Philippine exports in the first six months of 2015 were electronic products, worth $1.5 billion, or 49.9 percent of the country’s total goods shipments to China.

Cebu is heavily supplying frozen squids and fishes, Bascones said although there is  growing demand for other types of agricultural processed food.

Leading Philippine exports to China in 2014 were electronic products, with receipts amounting to $3.9 billion, or 46.5 percent of the country’s exports to China. (FREEMAN)