FILIPINOS businessmen are urged to take advantage of the existing Free Trade Agreement between China and the Asean which includes the Philippines.
Commercial Attache of the Foreign Trade Service Corps (FTSC), Emmanuel W. Ang, told Davao exporters and customs brokers about recent updates on China’s economy and potentials to welcome foreign products.
“There’s an increase in the income of Chinese people, RMB currency appreciation, inflation, and government policy to encourage further domestic consumption. All these make the Chinese afford to buy more imported products,” he said.
Ang was one of the resource speakers invited to encourage Filipino exporters in last week’s Information Session: Doing Business in Free Trade Areas held at the Grand Men Seng, this city.
The information session is an initiative of the Department of Trade and Industry (DTI) for educating Filipinos to make use of the existing trade agreements with other countries.
Ang explained that contrary to what many Filipinos think the Philippines actually imports more China made products.
“In 2010, the Philippines and China had a positive bilateral balance trade which shows that China actually imports more Philippine goods than it exports to this country,” he said.
A balance trade of negative 873.50 in 2009 was turned to 1,096.91 in 2010.
Ang also stressed the increase in salaries of Chinese workers as their government allows for a growth rate of more than 20 percent per year on workers earning minimum wages. This, he said, pushed employers to pay their workers above the minimum wage.
That openrd more windows for foreign products to be consumed by the Chinese market.
The DTI sees new opportunities arising in the furniture sector as China puts more focus on products utilizing indigenous design and materials. Another potential sector that exporters could take advantage of is the marine business. One example is the shipment of live fish to Zhuhai from the Philippines.
Filipinos are also seen as potential partners while China pushes to develop its own IT and IT enabled services industry. Ang cited the presence of Pinoy call center workers in Guangdong.
He said the China market is so vast that it can actually buy everything that Filipinos can offer. However, the challenge is the readiness of the Filipinos to do business in China.
“We should remember that China is a hungry market that’s why we must have the volume and the quality that China demands, ” he added. [PIA 11/MAI GEVERA-MACAPAGAT]
