The invasion of foreign products

 We are looking at a massive economic miracle unfolding in China. We should take notice of this impressive growth that any country should also embody in its laws and policies. Similarly, we should catch up with the distance that China is creating everywhere in the world.

For example, the vast production of EV cars going to the EU has attracted attention among members, and they are not taking preventive actions to protect their local car industries that must be saved from this onslaught of cheap EV cars from China,

There is a political touch in the situation that is hidden as the agenda of the CCP government that the EU should know more. Economic is the leverage of China in promoting its products in the EU, and there are always consequences to the matter when it comes to these political situations that are seen appearing on the horizon.

The matter of EV cars has now attracted attention in the EU as they will investigate the subsidies 

 being laid by the CCP for its EV manufacturers with the goal that cheap EV cars will kill the local manufacturers of Europe and consequently, they will dominate the landscape eventually killing other economies.

The best is yet to come with the recent concerns of the EU with these EV cars flooding their local market, that the forthcoming BRICS will pave the way more for this problem that the West will suffer more, if not greatly, under the full effect of the BRICS. Hence, the reflection of President Trump of the United States is that his America First Agenda is so far correct as this is now happening in the EU in the spike of the EV cars alone, and the EU first agenda is rising.

My proposal regarding EV cars flooding the European market now is the same as my appeal to our government proposal to act similarly to that situation in the EU.

Unless this government embraces technology or encourages our local talents in the fields shall be a good way to start this idea of progress for our economy. Unless the government loves and calls everyone to become industrialists and appreciate little products that we can turn into dollar-earning capabilities, there is no such hope for the future that this country may achieve without technology and enterprises.

There is a lack of interest on the side of the government or the public sector to patch the potentials of our people in entering the trade and industry capabilities of the population and start-up milling manufacturing in the country to save the country and put forth progress for every Filipino. embraces 

THE SUPPLY CHAIN AND THE PHILIPPINES

The pandemic season revealed that our government should pursue policies to protect the public interest and national security.

Given its significant manufacturing capabilities, China's supply chain dominance is of particular concern. China effectively controls the global supply of essential goods.

Given that supply is a critical factor for survival, we must initiate a substantial shift towards local manufacturing. This will help us gradually reduce our dependence on foreign supplies, thereby fostering stability and sustainability.

Therefore, with this current situation, the government should encourage and devote more of its energies to its local capacities, such as local capital and entrepreneurs, and invite and encourage many to engage in businesses and commerce to prop up the products that would balance this country's deficiencies.

There are wide varieties and spectrums of investments in traditional, modern, or advanced technologies that we should incur to reach the level of stability and self-sufficiency in domestic, business, and military that the country will benefit from immediately at this period to cope with the impending crisis ahead.  

peso falling against foreign currency

 Our government should intervene in or take action regarding the current situation in the US and the peso currency exchange rate to avoid economic collapse for the country and for the sake of national security. This expression or suggestion is an intervention for economic policies that should be undertaken to abate the continued destruction of the Philippine Peso against foreign currencies. The country lacks a manufacturing base or export industries to counter and balance the demand for USD, which continues to hurt the economy where inflation is at dangerous levels.

Unless drastic measures are undertaken or economic policy shifts for the country, the spiraling effect of the falling of the peso currency against foreign denominations will spark collapse and destabilize the condition of this republic.

As of now, the peso falling against any foreign currency will impact the lives of our people, and such consequences must be met with a firm government policy or a change of course in the current situation to avert anything dire at the moment.

Manufacturing

The country has very low manufacturing activity, or this sector is neglected, knowing that it is essential for economic progress. Trade imbalances between imports and exports are causing the peso to fall, and the government must understand that it should immediately install long-term protection for the peso or the economy by leveling exports and imports or, as much as possible, exceeding them and creating a surplus. 

Relaxed business regulations

While we consider our manufacturing sector an infant compared to other Western countries, particularly China, the government must consider or recognize that we should issue moratoriums on all industries. At the same time, we will move towards the level of industrialization goals. We should not apply strict regulations that discourage start-up businesses because start-ups cannot comply with the regulatory requirements of companies, causing them to close operations. 

In many areas of the country, whether urban or provincial, the government should refrain from shutting businesses because they are not faithful to regulations. While it is true that rules are violated, governance must not intend to shut businesses down at once; more so,  they may be granted periods or due consideration of recovery and rehabilitation of the climates businesses are facing or battling. To save the economy, small start-ups and struggling industries must be saved instantly by the government by granting rehabilitation periods to overcome marketing challenges and save the sectors that naturally are confronted by the ups and downs of market trends that affect them.

The government should consider the conditions and factors that entrepreneurs are fighting to keep and survive in their own fields of industry. The administration should understand that the law of supply and demand is a factor that commerce has to deal with, especially in international competition where foreign currency inflow is the goal.

Government agencies like the LGUs, the DTI, the DENR, and all other component bureaus and agencies' role in regulating industries should consider that industries must be kept alive and running. All should be included by knowing the situations of companies facing bankruptcies and closure due to market conditions and completions abroad. The good government policy should be that no businesses must close shop; instead, keep everyone alive and running for the sake of social benefits for all the population. While finance and cost operations are the main problems of an enterprise, it is not always in the country's best interest if no industry is left.

Remember, our goal is to have multi-millions of industries running in the country that will eventually surplus this economy. We understand that compliance of businesses with the government is the core  problem, but it is not always 

During this period, the government must not kill industries and save those that are failing. We understand that failing companies have lots of troubles and problems emanating from their management, resources, and other reasons not positive or healthy at all; still, the policy must be to save the skill, technology, and know-how of the business or the industry that must be saved. The government can introduce cures to companies that are failing or may subsidize them to keep the technology alive and look on the positive side of the endeavor for the country's benefit. there is employment, GDP, lessening of trade imbalances, and reducing demand for foreign products that are killing the peso rate exchange, thus saving our foreign reserves.

RED CARPET TREATMENT BY INDIA ON US FIRMS

With the news and developments happening in India at the moment, that this country is hell-bent on taking the biggest portion of foreign firms leaving China amid this pandemic situation, and in consideration that the US is very serious about resolving the supply chain of the world, is a highly significant occurrence that our government should put attention to and make strategies and solutions to our current economic state plagued by low foreign investments. 

Instead of adding more, the country is losing more. The closures of Japanese car plants and other big tech giants exiting our country sends a bad signal for American firms to put this country in their radar. 

Practically, there is no trade and economic policies that our government is doing facing this chance of having the bulk of American firms invest in the country in the hope of making it as the hub of  FDIs as a long term economic plan beside this pandemic is not shared positively for us.

While India is doing its homework, the Philippines is very unable caused by the previous statements made by the President and his animosity with the US caused by its human rights records that created this gap. He personally and openly declared his separation from the US from his previous state visit to China and for the lack of regard on defending the economy against the onslaught of imbalanced trade particularly with China and its onerous loans incurred, that it is very difficult now for the Philippines to return unless a change of government policy is taken as soon immediately.

It becomes difficult for the Philippines to benefit from the exodus of American firms now  about to flood India because of the circumstances given.

Our declining economy amid the pandemic is a matter of concern, that with the size of our trade, we are already in the brink of losing our balance, that something must be done to spur the business sector and liberalize its environment for the gneral welfare.

THE ARTICLE that India prepare red carpet for foreign firms leaving China









   

India Pledges Easy Access to Land for Factories Leaving China

In the article written in Bloomberg,THE BLOOMBERG ARTICLE CAN B READ HERE  it is impressive that India is doing everything to get he US companies now in the mode of an exodus from China by assigning a land pool to accommodate these American firms in India.

When this happens, India will entirely benefit the situation of the US of dismantling China as the Factory of the World, and yet in our case, what do we do?

We need foreign investments and technology for this country to prosper, and the only way to fast track the goal is to look at India now, already in talks with foreign firms going to them by making everything favourable to the investors and secure in long term manner their growth and GDP to rise that fast.

In our setting, we should make moves to invite these thousand companies now packing to leave China and that Japan also is making the same.

I don't hear stories in the country about these opportunities that other countries are doing in the background amid the closure of the ABS-CBN, while, in fact, these things should be the attention of our experts making moves on the opportunities of the pandemic.

The land issues is one thing that investors are very about, that their security fo heir long term investments shall be protected by all means but not sacrificing the constitution.

Tax, land and labour problems can be resolved by this ad hoc situation aimed for the benefit of the country, that an adjustment is needed to meet halfway our economic goals.

The regions of Mindanao should particularly be the good location for any proposed industrial site in the country because it is a sustainable and needs development, considering that the region will meet the standards favourable for the foreign investor by land and labour and taxes.

The government should speed up to make offers to these foreign firms as India is ramping on allocating lands appropriate for all foreign firms that son receiving inquiries from the US, Japan, South Korea, and the EU's that should make the Philippines send our officials, negotiators that should make things happen immediately.

TRUMP SEEKING TO REWIRE SUPPLY CHAIN , REDUCE CHINA DEPENDENCE

TRUMP SEEKING TO REWIRE  SUPPLY CHAIN , REDUCE CHINA DEPENDENCE

In view of the recent developments caused by the pandemic virus from China, the United States has now introduced plans to shift its dependence from China of its the supply chain;  not only that, but the on-going conflict in the south China Sea is also a rising concern because of trade hampered by China's provocative actions in the sea lane. 
It was established that there are no historical claims fo China's nine-dash line. 

At many instances, there is a satisfying reason that China is not a fair country to deal with, presented by the numerous incidents and situations where it reneged on its statements and promises, and generally, it is now suffering a backlash from countries because of the COVID-19 pandemic that originated in Wuhan. 

Because of the plans of the US to shift the supply chains elsewhere, it is very significant for our government to study and take steps towards benefitting the thousands of manufacturers as potential investments in the country that will be a game-changer when it materialized.

Because Inda is on the verge of luring the US businesses to seek them invest in their country, very special consideration for the government to adjust for this sudden change of events to invite the same the US companies to have a look and consider the Philippines at this statement of President Trump. 

Foremost, tax and labour regulations must be adjusted to meet favour for foreign businesses to consider the country on a basis that it will have a gradual and reasonable change for the long term solution to our FDI problem. 

(We will discuss in the next episodes the local businesses that would primarily benefit anything that the  government will legislate alongside with what is best for both foreign and local investments in a single goal of GDP growth.)

The supply chain is one area where the country can benefit arising from the current pandemic situation that our government should look hard into because this is an opportunity for the country to have a good share of foreign firms leaving China. the situation now should have an effect on the government to move on this path of competing with India who is now in motion that will heavily impact the country economically.

Because we lack the technology, foreign investments will make headway for the country to self-develop and gain technology as a long term aspiration.

INDIA LURING MORE THAN 1,000 U.S. COMPANIES OUT OF CHINA

INDIA LOOKS TO LURE MORE THAN 1,000 U.S. COMPANIES OUT OF CHINA.

In the Bloomberg article dated MAY 7, 2020 The Bloomberg Article Here, it is seen that India is underway working to lure a massive 1,000 U.S. firms to transfer to India from China amid the pandemic situation, and this shows for the Philippines competition in terms of luring foreign investments to uplift the country and industrialize its economy.

The number of companies, if it will invest in a country, will create a great surprise in the GDP of that country and India has sent invitations and letters yet responded at the moment by the U.S. firms. 

Conversely, I hope the Philippines had taken the same initiative as India to take the chance of a trade war, the COVID-19 pandemic, and recent statements and moves by Japan, the EU and most countries to bolt from China.

The Philippines should the same invite these 1,000 U.S. firms in competition with India and present our case as the best offer over all other countries' scouting transfer to other neighboring countries.

One big aspect of the offer is India's bent to change its tax and labor laws just to fit the convenience of US companies to invest. In the same manner, the Philippines should also look into the conditions of our tax and labor laws to mend the situation and eventually harvest the needed investments abroad.

It is an Investor market, believe it. the law of supply and demand rules.

India knows exactly how to address the problem of luring US companies out of China, and that is through tax and labor laws.

In our setting, there is no gainsaying that our own tax and labor regulations present a hostile picture to capitalists, that for an emerging economy like the Philippines, trying to engage a role in the supply chain of the world, we must be self-ready and make the necessary adjustments for the demand of times.

Because the news article presents a threat to the economy of the Philippines, it is time that we should so look at our situation and offer the same when necessary in the spirit of competition.

Because of that offer, we should hold back some of our tax and labor regulations just to make the economy of the country competitive with the international demands.

We will discuss at another time how the government and our local entrepreneurs can be tapped to augment foreign investments and serve as the backbone of our economy, i.e. to relieve private sectors of stiff regulations of the government and make the country livable for capital and investments both local and international so it may thrive and succeed in the international competition of world trade.