The Philippines is being urged to use continued trade between the United States and China as an opportunity to expand its own export markets rather than remain heavily dependent on either major economy.
Trade Secretary Ma. Cristina Roque said stronger trade flows between the world’s two largest economies could create opportunities for Philippine exporters, but the country should continue building relationships with other markets.
The strategy comes as the Philippines records sustained growth in merchandise exports. From January to July 2026, exports reached $54.92 billion, up 12.9% from the same period a year earlier and the highest seven-month total since the current data series began in 1991.
The United States, Hong Kong and China were among the Philippines’ largest export destinations in June. The US accounted for $1.76 billion, or 20.1% of total exports, followed by Hong Kong at $1.34 billion and China at $1 billion. Japan and Singapore also ranked among the country’s leading markets.
The concentration of exports in a relatively small number of major markets has increased the importance of diversification as global trade conditions remain uncertain. Expanding into additional markets could provide Filipino exporters with more channels for selling electronics, agricultural products, processed goods, garments, services and other Philippine-made products.
Electronics remain particularly important to the country’s export performance. The sector generated $45.89 billion in exports in 2025, accounting for more than half of total Philippine exports, while industry officials have raised their 2026 growth forecast to as much as 10% because of demand linked to artificial intelligence, data centers and related equipment.
The government has been pursuing wider market access through trade agreements and export-promotion programs. The Philippines and European Union recently reached a substantial agreement in their free-trade negotiations, while talks with Canada have also been nearing completion.
China remains an important market as well. The Philippines participated in the China-ASEAN Expo in September as this year’s Country of Honor, sending a 313-member delegation that included 73 export enterprises. Philippine companies generated more than $18 million in export sales at the previous edition.
The push for diversification does not mean reducing trade with the United States or China. Instead, the focus is on creating additional destinations for Philippine products so exporters have more options as tariffs, supply chains, geopolitical conditions and consumer demand change.
With exports continuing to post strong growth, the broader challenge is turning that momentum into a wider and more resilient international market presence for Philippine businesses.
