PH emerges as preferred hub for China-based firms – PEZA

The Philippines is gaining ground as the preferred expansion hub in Southeast Asia for Chinese and multinational firms looking to diversify operations amid growing global trade tensions, the Philippine Economic Zone Authority (PEZA) said.

PEZA Director General Tereso Panga announced Monday that the country is increasingly being chosen as a strategic manufacturing and operations base by firms seeking to relocate or expand outside China. This trend is driven by the evolving global trade environment, particularly the United States’ policy to impose a 20 percent tariff on all imports from China.

“Under the current Trump 2.0 trade regime, the C 1 strategy has evolved into C 1 1—or C 2—with the Philippines now considered the new ‘plus one’ destination in ASEAN by companies relocating from China,” Panga said in a social media post.

Vietnam has long been a popular choice for China-based companies due to its geographic proximity, but the Philippines is now catching up thanks to its strategic advantages and investor-friendly policies, Panga noted.

During recent PEZA investment missions in Chinese cities including Xiamen, Chongqing, Shenzhen, and Dongguan, Panga said around 220 company representatives expressed growing interest in setting up operations in the Philippines.

Among the notable companies is Dongguan-based Aoxing Group, an OEM for projector equipment and audio-visual products used by global brands such as HP, Epson, and Skyworth. The firm has selected the Philippines for its manufacturing operations aimed at the U.S. market.

Another key investor is TE Connectivity, a U.S.-Irish multinational with 20 factories in China. The company is investing %u20B11.7 billion in a facility for electro-optical components in a PEZA ecozone, expected to create over 2,000 jobs. TE Connectivity is also eyeing further expansion in the Philippine IT-BPM sector.

“Several MNCs in electronics, EV, and automotive sectors have already relocated part of their operations to the Philippines,” Panga said, adding that major global firms—including leading producers of solar panels, vitamins, and TV monitors—are in the investment pipeline.

As of now, PEZA has registered 118 companies from mainland China with %u20B128.7 billion in investments and over 16,000 jobs created. The agency also counts 78 companies from Hong Kong and 84 from Taiwan as registered investors.

“With our strong affinity with the U.S., favorable trade status, and a strategic position in the ASEAN region, the Philippines stands as a compelling choice for firms looking to relocate or expand operations from China,” Panga added.