Economy

China emerges as major export market for Philippine products

(Xinhua)
Updated: 2011-02-15 17:07

MANILA, Philippines?- China's rise as an economic powerhouse is one of the key factors that propelled the Philippine export sector.

Philippine export revenues in 2010 soared to a better-than-expected 33.7 percent growth rate. With receipts hitting $51.39 billion -- the first time since 2007 that annual revenues breached the 50-billion US dollar-mark.

The global recovery has resulted to sharp growth spurts between the Philippines and its trading partners. But Philippine export to China stood out, posting a 94.32 percent growth in export receipts in 2010.

Victor Abola, economics professor at the University of Asia and the Pacific, attributed this to the fast growing Chinese economy.

"Increasing domestic demand as well as the need of China to increase infrastructure to import more products," Abola said.

This include increased demand for minerals and metals like iron one, copper and nickel. He added the stronger purchasing power of consumers boosted demand for processed Philippine food products and fresh fruits like bananas

China has been increasing its global clout for the past few years thanks to its spectacular growth. With its economy valued at $5.8 trillion, China passed Japan as the world's second-largest economy behind the US.

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The manufacturing boom fueled China's growth and its expanding domestic industries and infrastructure boosted demand for metals, farm produce and electronics. China has imported materials from Southeast Asian countries?such as?the Philippines. In 2008, trade between China and the Association of Southeast Asian Nations (ASEAN) trade peaked at $231 billion.

The establishment of the China-ASEAN Free Trade Area in 2010 has expanded bilateral trade. According to China's General Administration of Customs, China's imports from ASEAN increased 44. 8 percent to $154.56 billion in 2010. Bilateral trade rose 37.5 percent on year to $292.78 billion.