US firms eye PHL for relocation, expansion amid US-China trade war — envoy

Some American companies are either considering to relocate or expand their presence in the Philippines amid the US- China trade war, Manila’s envoy to Washington said.

When asked if the Philippines has benefited from the fallout of the trade war by the two global economic powerhouses, Ambassador Jose Manuel "Babe" Romualdez said at least one major American animal nutrition supplier will expand its operations in the country.

"If I'm not mistaken there is Cargill. Some other companies that instead of investing more in China, they've decided to expand their operations here. I think Procter and Gamble is also one," Romualdez told a group of reporters Tuesday.

Although Cargill has been in the Philippines since 1947, Romualdez said the company will be investing $250 million in its expansion plans.

Several other US firms have also expressed interest in the Philippines because of its strategic location in the center of Southeast Asia, Romuladez added.

"We have a list of companies that have indicated their intent to move to the Philippines or expand their operations," he said.

However, he said, more foreign companies would move to the Philippines if it will relax its restriction on foreign ownership like Vietnam, which has benefited largely from the trade war with many businesses relocating there in recent times.

"We really have to fast track many of these reforms that we have, economic reforms. Main reason why they are turned off is because of the provision in the Constitution that you cannot own more than 40 percent. That’s a big negative for us. So the minute they see that they lose interest," Romualdez said.

"In Vietnam there is no limit that's why they are getting a lot from the fallout from China. They have incentives. It's so easy."

The US and China are locked in a bitter trade battle with President Donald Trump accusing Beijing of unfair trading practices.

Washington imposed tariffs on billions of dollars worth of Chinese products in 2018, a move that angered China, which retaliated in kind. — RSJ, GMA News