THE Philippines is becoming increasingly tied to the China market amid improved ties and as both sides discover new ways to participate in each other’s economy as China shifts to higher-value products, trade attaches told participants at the 2019 Philippine Business Conference and Expo.

Jiang Jianjun, commercial counsellor at the Chinese embassy in Manila, said Thursday that China’s economy is in the process of opening up, and said he expects increased trade in electronics and manufacturing equipment to boost regional economies.

He added that Philippine-China trade is growing steadily despite an overall decline in international trade due to the warming of bilateral ties pursued by the two countries’ leaders.

Glenn G. Peñaranda, the Beijing-based commercial counsellor with the Philippine Trade and Investment Center, said Chinese manufacturers are adjusting to admit more Philippine suppliers.

“They’re moving up the value chain, but they still need inputs. That’s why they need the minerals and other raw materials,” he said, noting that China is the Philippines’ number one trading partner.

Mr. Peñaranda said the main opportunity for the Philippines is to complement Chinese manufacturing with its own highly-developed service industry, including its English-speaking workforce.

“China is very good at manufacturing and they’re now starting to engage the global community. The surveys indicate that they actually lack people who have good English skills which is needed for doing international business,” he said.

Mr. Jiang added that Chinese construction companies can help address the Philippines’ infrastructure gap.

“Building efficient infrastructure network is important to accelerate the process of growth and urban migration,” he said.

As China transitions from an investment to a consumption-driven economy, the two counsellors said many opportunities also lie in the growing purchasing power of the Chinese middle class, with Mr. Jiang citing the possibilities tied to China’s growing adoption of e-commerce.

Mr. Peñaranda added that the growing Chinese visitors could be developing a taste for Philippine food, creating demand on the Mainland.

“The challenge is supply. It has improved, but there’s much work we need to do.”

Mr. Peñaranda said that the one-child and subsequent two-child policies in China have also limited the number of young who can support older generations, creating possible demand for caregivers.

The average age in the Philippines is 24, compared to China’s 37, he said. — Jenina P. Ibañez

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