Trade and Industry Secretary Alfredo E. Pascual reported that Chinese firms have committed to invest $7.32 billion in nickel processing, power batteries, electric vehicles (EVs), electronics, and steel as they got wind of the Philippines’ plan to ban the export of raw minerals.
Pascual said that Chinese firms made the investment pledges during a Roundtable Meeting (RTM) on Strategic Industries during President Ferdinand R. Marcos, Jr. visit to China. The roundtable was also attended by Former President Gloria Macapagal Arroyo, House Speaker Ferdinand Martin Romualdez, other members of the Cabinet, and representatives of Chinese businesses.
The RTM revolved around a discussion to encourage Chinese investments in the Philippines, particularly in strategic industries in the manufacturing sector. “In total, about $7.32 billion investment pledges from Chinese companies were secured in the aforementioned sectors,” said Pascual.
The Philippines supplies 60-70 percent of China’s total imports of nickel ore and concentrates. Chinese companies are also increasingly interested in the Philippines’ policy discussions on discouraging the export of unprocessed nickel ore.
“The processing of nickel and manufacturing of battery and e-vehicles are vital to the Philippines’ economic transformation. Both sectors can create lasting impact on our country’s industrialization, economic development, clean energy future, and climate resilience,” Pascual stated.
Moreover, Pascual boasted that the Philippines now has a healthy and competitive business environment that will enable strategic and sustainable manufacturing companies to thrive. He underscored that the Philippines is a key player in the green metals sector, which are vital to the global transition to clean energy, saying that, “the Philippines has over nine million hectares of land with mineral potential, 92 percent of which have yet to be responsibly utilized. We also have over 450 million metric tons of nickel reserves. Our country is home to nickel mines, nickel processing plants, and copper mines. And we are keen to have investments in value-adding mineral activities.”
The metals industry is vital to the Philippine economy as it provides employment opportunities to a significant portion of the population, both directly and indirectly.
Further, the trade chief said that the metals industry spurs both national and regional development as companies also invest in infrastructures and other metals processing facilities.
Meanwhile DTI Undersecretary Ceferino Rodolfo led the Philippine business delegation in a site visit to the wafer fab facility of Semiconductor Manufacturing International Corporation (SMIC) during the President’s visit.
During the visit, Rodolfo reported that SMIC mentioned their interest to partner with the Philippines to promote the development of the communications technology sector and contribute in the digital transformation of the Philippines.
SMIC is one of the leading foundries in the world and the largest wafer fab business in China. They are also considered as a frontrunner in manufacturing capability, scale, and comprehensive service within the Chinese Mainland.
The factory visit was arranged through FiberHome, a major Chinese networking and telecommunication equipment provider, which is a sister company of SMIC. Wuhan FiberHome International Technologies Co. Ltd. Chairman Taurus Fan led in welcoming the DTI representatives and members of the Philippine business delegation to Beijing.
FiberHome continues its expansion in the Philippines, which started in 2011. The Company now has 14,967 Filipino employees (out of a total of 15,340), 110 offices, and 58 warehouses, with their Fiber To The Home (FTTH) systems/devices reaching about 10 million Filipino homes.