Philippines to push exports to China

New strategy to focus less on electronics

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Freshly harvested bananas from the Philippines’ biggest banana producer Tagum Agricultural Development Co. in Tagum in Davao del Norte province located at Mindanao are ready for packing. The Philippines is China’s major supplier of bananas to China, among other countries. The government intends to tweak the country’s export strategy by pushing for a further penetration of the Chinese market and focusing less on electronics. AFP PHOTO/ROMEO GACAD

The government intends to tweak the country’s export strategy by pushing for a further penetration of the Chinese market and focusing less on electronics, aiming to reverse last year’s contraction in export earnings that followed the changes in the global economic landscape.

The nearly 7-percent drop in exports last year was attributed to the decline in demand for electronics and other non-essentials from advanced Western economies, which had been key markets for Philippine-made goods, as they suffered from debt and economic woes.

Economic Planning Secretary Cayetano Paderanga Jr. said the Philippines has to wisely react to developments offshore to minimize the ill-effects of unfavorable external developments on the domestic economy, and doing so entailed revising the way the country did its export business.

“There is also an urgent need for the government to diversify our exports base,” Paderanga said Friday night in a speech delivered during the induction ceremony of the 2012 board of the Economic Journalists Association of the Philippines (EJAP).

Paderanga, who is also director general of the National Economic and Development Authority (NEDA), said the Philippines has to take advantage of the intentions of China, the world’s fastest-growing economy, to become more import-oriented. He said the Philippines has to look for ways to increase its exports to the giant Asian neighbor to benefit from the new mindset of China.

China, which has been keeping its currency weak as it aims to keep its exports relatively cheap and thus more affordable and competitive, is reported to be focusing on boosting domestic income as a source of growth and this is seen to cause a rise in its import demand. The changing strategy of China is anchored on the weak global demand over the past few years due to the crises suffered by Western economies.

China has been one of the major markets for Philippine-made goods. The United States and the eurozone account for about 15 percent of Philippine export earnings.

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  • Jk Od

    Hi! May I know if there are any new and unique products that we can sell/export to China? I hope someone can help me. Thank you and have a great day! :)

  • Anonymous

    To my dear countrymen especially the farmers, be bold and be ambitious. Protect your rights and build your future. Be a businessman and avoid being exploited and fooled by middle man. Do not limit yourself from your surroundings. Expand your network, be assertive and be business-minded. But of course the government should assist you.

  • Bayabas San

    China is there for the taking in terms of trade.

    Why Pinoys are so coy to exploit this situation is beyond explanation except for fear and ignorance.

    China is no longer a communist state.

    It’s the second largest economy in the world and soon to be first.

    The best advantage of all: it’s not thousands and thousands of miles away. It’s only 100 miles from Batanes.

    Singapore knew this for decades. Malaysia knew this for a few years. The Philippines did not and do not want to know as Mama America might get angry and will not talk to us anymore.

    Guess what! Mama America knew this all along and she has been sleeping with the Chinese for 50 years.

    So grow up Pinoys. Job one is jobs, jobs, jobs…and China is the answer.

  • http://pulse.yahoo.com/_JEMNLLYAP5EA7SM3A6QUOGV62Q Chris

    We need diversify our exports, since more than 50% is electronics which is very sensitive to economic developments and has little add on effect on the economy in general. We need to focus  not only on agricultural products but also on minerals like coal, copper and local products like furniture and other high valued products. Commodity exports are the saving grace of our Asian neighbors like Indonesia – coal & other minerals, Malaysia – palm oil and other countries Mongolia – coal& other minerals, Australia, Middle East – oil.

  • Anonymous

    Philippines has abundant export quality of fruits and vegetables. Besides, fruits and vegetables as export may not be affected much in case of a slowdown in the economy of other countries as people will remain eating even if their country’s economy is in bad shape.

  • http://joboni96.myopenid.com/ joboni96

    mag exexport nito
    mga intsik sa bayan natin

    hina pa rin kita ng pilipino producers

    diversified export market
    by pilipino producers

  • Anonymous

    Pagbalik ng saging dito, naka-canned na.

  • Anonymous

    tapos nya awayin sa media yung china ngayon pala kailangan nya mag export. ipakain nya sa mga taga malacanang lahat ng saging

    • http://profile.yahoo.com/ZXDQ22VLD5UBXL2SGNXJJEEKK4 Joe

      titi mo siguea puro opposition sa magandang adhikain ng govt…titi mo supot ka 

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