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TRADE AND COMMERCE

________________________________________________

 

DEVELOPMENT OF PHILIPPINE AND CHINA TRADE AND INVESTMENT RELATIONS

 

·     Historical documents prove that the peoples of the Philippines and China have enjoyed extensive economic ties as early as the 7th century.

 

·     21st century, mutual trade and investments provide a solid pillar in the long-standing, friendly relations between the two nations.

 

·    2000, bilateral trade volume grew at an annual average of 41.77 per cent, with the Philippines gradually selling more to China than it buys from China

 

·   2005, Chinese President Hu Jintao visited the Philippines, a trade volume of US$30 billion was targeted by 2010

 

·     2007, Premier Wen Jiabao visited in early 2007 and President Gloria Macapagal Arroyo made an unprecedented three visits to China, the exchange of high-level visits has brought the Philippines closer to China

 

 GOLDEN AGE IN PHILIPPINE -CHINA RELATIONS

 

·     China is the Philippines’ 3rd top trading partner in 2006, moving up from 9th place in 2002. China is the Philippines’ 4th largest export market and 5th largest supplier of imports in 2006.

 

·    Exports of Philippine products to China have increased more than three-fold – from RMB 11.6 billion in 2002 to RMB 36.7 billion in 2006, with an average growth rate of 36.2%. 

 

·    Semiconductors are the Philippines’ top exports to China, making up 71.6% share of total receipts in 2006.

 

·    Chinese investments in 2006 reached RMB 2.78 billion, posting a remarkable 9,116% growth over 2005. This makes China the 4th largest source of approved foreign direct investments (FDIs) next to Korea, the U.S. and Japan. From 0.2% share in 2005, Chinese investments now make up 11% of total Philippine approved FDIs.

 

LIST OF BILATERAL AGREEMENTS BETWEEN PHILIPPINES AND CHINA 1999 UP TO PRESENT

1999      Agreement on Cooperation in Agriculture and Related Fields

 

2000     Memorandum of Understanding between Bangko Sentral ng

            Pilipinas and the People’s Bank of China on the establishment of 

            Banking Institutions in each other’s territories

 

Agreement between the Department of Finance and the China National Construction and Agricultural Machinery Import and Export Corporation on a US$100-million credit facility to finance agricultural development projects in the Philippines

 

2001    Cooperation Agreement between the Philippine Chamber of   Commerce and Industry (PCCI) and China Council for the Promotion of International Trade (CCPIT)

 

2002    Memorandum of Understanding between the Philippine National Railways and China National Technical Import Export Corporation and China National Machinery and Import & Export Corp

 

2003    Memorandum of Understanding Regarding the Utilization of the US$400-million Preferential Buyers' Credit from China to the Philippine s between the Export- Import Bank of China and the Department of Finance of the Philippines

 

Letter of Intent between the Philippine National Oil CO. Exploration Corp. and the China National Offshore Oil Corp. (CNOOC)

 

2004     Agriculture of the Republic of the Philippines and the Ministry of Agriculture of the People's Republic of China on Fisheries Cooperation

 

Supplemental Memorandum of Understanding between North Luzon Railways Corporation and China National Machinery and Equipment Corporation (Group)

 

2005    Memorandum of Understanding on Mining Cooperation between the Department of Trade and Industry (DTI) and China's Ministry of Commerce (MOFCOM

 

Memorandum of Understanding between the Government of the Philippines and the Government of the People’s Republic of China on the Promotion of Trade and Investment Cooperation

 

Memorandum of Understanding between the Government of the Republic of the Philippines and the Government of the People's Republic of China on the Early Harvest Program under the Framework Agreement on Comprehensive Economic Cooperation between the Association of South East Asian Nations and the People’s Republic of China

BILATERAL MERCHANDISE TRADE

In 2008, the People’s Republic of China was the Philippines’ third largest trading partner, accounting for a total of $9.715 billion or 9.2 percent of the total trade ($105.670 B). The 2.7% decline in the total RP-China trade from 2007 to 2008 was due to the slowdown in exports in 2008, but China still remains the third largest export market of the Philippines for two years now. On the other hand, China ranked as the Philippines’ fifth largest supplier of imports in 2008.

APPROVED FDI FROM PROC

For 2008, total China FDI totaled Php2.307 billion or US$ 48.06 million. It posted an increase of almost 27% from 2007’s FDI from China worth Php1.822 billion or US$37.96 million.

With China’s emergence as an important economic partner of the Philippines, Chinese potential investment is expected to continually increase.  

 

 

Click here for more information

 

Philippine Trade and Investment Center

 

INDUSTRY PROFILES:

 

Philippine President Gloria Macapagal Arroyo with Chinese President Hu Jintao during her working visit to Shanghai in October 2007

Philippine President Gloria Macapagal Arroyo with Filipino and Shanghai businessmen during the Philippine Business and Investment Forum in Shanghai in October 2007

 

Philippine President Gloria Macapagal Arroyo with Officials of the China Council for the Promotion of International Trade -- Shanghai

TRADE OPPORTUNITIES: PHILIPPINE PRODUCTS FOR THE CHINESE MARKET

 

·     Furniture Products

·     Marine Products

·     Fresh Fruits

·     Automotive parts

·     Electronic Components

 

INVESTMENT PRIORITIES PLAN

·     Agriculture/ Agri-business and Fishery

·     IT and IT-Enabled Services

·     Infrastructure

·     Tourism

·     Research and Development

·     Engineered products

·     Mining

·     Electronics

 

Agriculture/Agri-Business & Fishery

 

 

·     Agricultural and fishery products including their by-products  

      and wastes

·     Biofuels

·     Feeds

·     Organic Fertilizer

 

 

IT and IT-Enabled Services

 

·     IT Services (software development)

·     IT-enabled Services

             o     Contact Centers

             o     Medical/ Legal Corporate Transcription

             o     Animation

             o     BPO/KPO

                                                          o     IT Support Activities (R&D, incubation centers,

                                                                 educational/training institutions, ISPs)

 

Infrastructure

 

·     Physical infrastructure

·     Power generation

·     Mass housing

·     Bulk water supply

·     Mass rail transport

·     Pipeline projects for oil and gas

·     Projects under Build-Operate-Transfer   (BOT) Law

                                                                           ·     Logistics 

 

Tourism

·     Tourist Accommodation Facilities

·     Resorts

·     Retirement villages

 

 

 

 

·     Health and Wellness

o     Tertiary care hospitals with specialized services

o     Ambutory surgical services

o     Dental services facility

o     Rehabilitation and recuperation services facilities

o     Healthcare and wellness products

 

Research and Development

 

·     Commercial and In-house R&D activities

·     Establishment of Centers of Excellence, innovation and skills development training institutions

·     Training/Learning Institutions

 

Engineered Products

 

 

·      Manufacture of machinery and equipment

·      Iron and Steel

·      Manufacture of parts & components of motor vehicles

·      Manufacture/Assembly of motor vehicles

·      Shipbuilding

 

Mining

 

·      Located in the “Ring of Fire”

·      5th most mineralized country in the world

       o     2nd in Gold

       o     4th in Copper

       o     5th in Nickel

       o     6th in Chromite

·      Established reserves of 13 known metallic & 29 non-metallic minerals

       (Mines &    Geosciences Bureau)

·      RP has 9 million hectares of mineralized  land

 

 

 

 

 

Electronics

·     Original Design Manufacturing (ODM)

·     Electronics Manufacturing Services (EMS)

·     IC design

·     Manufacture of electronic products and their inputs

 

PTIC MISSION  & SERVICES

 

MISSION

 

To generate income, employment and foreign exchange through the promotion of exports of products and services, the attraction of Chinese investments, and the provision of necessary commercial and market intelligence and policy representation in China

 

SERVICES

·     Economic Information Service

·     Referral to Chinese Buyers & Prospective Business  Partners

·     Referral to Philippine Suppliers and Outsource Providers of 

      Goods and Services

·     Business Matching

·     Organization of Trade and Investment Missions

·     Generation of business leads and opportunities

·     Implementation of Trade Fair, Seminars and Conference  

      Participation

·     Investigation of Trade Complaints

·     Commercial and Market Intelligence Reporting

·     Policy Representation & Negotiation of Trade Issues

·     Trade and Investment Facilitation and Handholding of

      Clients/Consultancy

 

 

Philippine Trade and Investment Centre, Philippine Consulate General-Shanghai

Address:          Suite 1711 Shanghai Mart

2299 Yan'an West Road, Shanghai 200336
People's Republic of China

 

Telephone:      +86 (21) 62367297
Facsimile:       +86 (21) 62367576

Email:              ptic@philcongenshanghai.org

dtishanghai@yahoo.com  

 

Copyright Philippine Consulate General, Shanghai - September, 2009