The Philippines is among the Asian economies most vulnerable to a new wave of Chinese export competition, as Beijing’s rising dominance in key manufacturing sectors threatens lower-value and labor-intensive industries, according to Nomura Global Markets Research, as reported by Philstar Biz .
Nomura’s analysis highlights that China’s shift toward more sophisticated manufacturing could crowd out Philippine exports in sectors like electronics, garments, and furniture. The research notes that the Philippines has a high degree of export overlap with China, making it susceptible to displacement as Chinese firms ramp up production and gain cost advantages.
The report warns that without upgrades to the Philippines’ industrial base and value chain, the country risks losing market share both domestically and globally. Policymakers are urged to focus on innovation, infrastructure, and skills development to mitigate the impact of China’s export expansion.