The Philippines should gear up for stronger competition in Southeast Asia as exports of China may slow down next year, according to the Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII).
“At this point in time, we’re happy that Trump is promoting peace around the world. So hopefully that will be a plus point between the Philippines and China, because war is not good for anyone,” FFCCCII President Cecilio Pedro told the BusinessMirror on the sidelines of the MAP General Assembly on Monday.
However, Pedro expressed concern over the “America First policy,” as he said that this will also affect China in terms of trade.
“They want to impose additional duties on imports from China, and in that sense, the world economy will be affected by China. The export of China will slow down. It will not stop, but it will slow down,” Pedro also told this paper.
The president of the largest organization of Filipino-Chinese businesses pointed out that the plan of president-elect Donald Trump to impose additional tariffs on imports from China could also affect Southeast Asian countries.
“And it could also affect here, Southeast Asian countries, especially our small economies, could be affected. So we have to be prepared for whatever will happen in the slowdown that will be coming very soon in next year, in many, many aspects, we have to be gearing up for better or stronger competition from our neighbors. So kailangan, magaling tayo, that’s about it,” Pedro also noted.
Moving forward, Pedro said Philippine firms have to adjust with the foreseen slowdown of exports of Chinese-made goods.
“Ease of doing business is the key, because all other countries around us, like Vietnam, Indonesia, Malaysia, Thailand and Singapore, they’re all easing up to accommodate investment, and we have to compete along those areas, otherwise we will not be able to compete,” added Pedro.
Philippine Statistics Authority (PSA) showed that the People’s Republic of China is the Philippines’ top source of goods as it amounted to $24.30 billion in the January to September 2024 period, 11.5 percent higher than the $21.79 billion imports in the nine-month period in 2023.
In contrast, PSA data indicated that the United States is the Philippines’ top export destination. Outbound shipments to the US in the January to September 2024 period amounted to $9.18 billion. This is 7.8 percent higher than the $8.52 billion export receipts in the January to September 2023.
Trump earlier floated the possibility of imposing a 10-percent tariff on all US imports and a 60-percent import duty on Chinese-made products.
According to a Reuters article, some US businesses are already “activating” plans to protect their businesses from Trump’s promise to slap new tariffs on Chinese-made goods, among others.
For instance, in Chicago, the Reuters article noted that a business has “quadrupled orders for an online retailer’s best-selling Chinese-made shirts and doubled orders for its most popular pants for adults who have trouble dressing themselves due to arthritis, dementia or being in a wheelchair.”
“Given the uncertainty around tariffs, we wanted it delivered before Chinese New Year” on Jan. 29, Zollo said of that merchandise, the Reuters article noted.
During his 2017-2021 presidency, Reuters said Trump imposed “waves of tariffs” on products like steel, washing machines, solar panels and consumer goods from China. US importers responded by rushing in goods ahead of those tariffs, it added.
