PH braces for Chinese goods influx

Net importing countries like the Philippines should brace for a barrage of Chinese goods as China seeks alternative markets to the United States (US) amid intensifying trade tensions between the two economic giants, according to the think tank Capital Economics.

- By BEN ARNOLD DE VERA

In an April 15 report, Capital Economics chief global economist Jennifer McKeown pointed out that even prior to US President Donald Trump's tariff spree, emerging Asian economies, including the Philippines, "have seen the largest deterioration in their trade position relative to China in the past five years." "Thailand, the Philippines, and Vietnam have all seen their deficits with China rise significantly over the past five years, as have Mexico and Turkey. This relates partly to rerouting of China's exports via some of these markets, but not entirely," McKeown noted.

The latest Philippine Statistics Authority (PSA) data showed that from January to February 2025, the value of products imported from China soared by 19.4 percent to $5.77 billion, from $4.84 billion in the first two months of 2024.

In the month of February alonewhen Trump was already threatening tariffs on US trading partners with whom it has huge trade surpluses-Philippine imports from China jumped 12.6 percent to $2.46 billion, from $2.18 billion a year ago.

The share of Chinese exports to the Philippines' total imports has also been steadily rising-to 27.6 percent as of end-February 2025, from 24.3 percent in the previous year.

Imports from China in February this year accounted for 26.1 percent of the month's total, up from a year ago's 22.8-percent share.

Only China enjoys a double-digit share of Philippine imports among all trading partners.