A Case Study on “How Chinese Products Affect the Market Economy of the Philippines” Essay Example

in the world, providing different countries with their products like food, clothing, gadgets, medicines and mostly Feng Shui items that can represent the different kinds of luck that we can have. B. Statement of the Problem This research was conducted in order to determine how Chinese products affects our economy .

It also aims to know what products they sell and how it affects the market whether in a positive or negative way. We would like to prove what are the reasons of their stay here whether how long or how they’ve started their business here. To know how much do they earn from the products that they sell , to know if they would take risk of investing their money even if the economy changes whether if it becomes high or low. To know how much the Philippines and the China benefit from each other through the businesses of the Chinese community here in our country. C. Scope and Limitation of Study

The scope and Limitation of the study was about Chinese people on how they affects our economy. We surveyed 19 people randomly according to their nationality if they are Chinese or Filipino – Chinese. The significance of this study is to let us learn and explain why Chinese businesses or community were widely spread not just in the Philippines but also in different countries in the world. We would like to know what particular reasons why they’ve chosen here in our country. In selecting the respondents, the researcher had set criteria in order to have an effective study.

These were as follows:

1. The respondents should be Chinese or Filipino – Chinese.
2. The respondents reasons why
   

they’ve chosen to live and have a business here in the Philippines CHAPTER II. THEORETICAL AND CONCEPTUAL FRAMEWORK Review of Related Literature.

CHINA’S EXPORT TO ASIA

China is one of the most well developed countries in the Asian continent. Located in the Southern part of the continent, Even though China is one of the most populous countries, they have a very stable economic status. Though agricultural output is the biggest contributor to the economy of China, the country is also one of the major centers for industrial operations in the continent.

Apart from that China is also one of the biggest centers for international business operations in the continent. Thanks to its foreign trade policies, China has got a very strong trade relation with almost all countries in Asia. Imports and export trading take place between China and other Asian countries on regular basis. There is a huge demand for various China-made products in other Asian countries and are imported in huge quantities. With the improvement of the economic conditions of the other countries in the continent the demand for products manufactured in China is also rising significantly.

In fact the rate of China's export to Asia is one of the highest after United States of America nowadays and is expected to rise more in the coming days. Speaking about China's export to Asia it must be said that there has always been a huge demand for traditional Chinese products in the markets of other Asian countries. But before saying about that one must mention about the rising trend of using Chinese electronic and electrical household and consumer appliances in other parts of Asia. In the recent decades,

the rate of export of electronic and electrical items from China to other Asian countries have increased significantly.

Chinese electronic audio-visual equipments like digital camera, manual camera, handy cams, music systems, tape recorders, CD and DVD players, LCD screen television, laptops are now largely available in markets of other Asian countries like India, Pakistan, Sri Lanka, Singapore, Thailand and as the cost of production is low people of Asia are getting the products at quite cheap rate. Different varieties of Chinese silk and silk garments are imported by other Asian countries in huge quantities. Chinese silk is indeed one of the best quality silk in the world today.

Different varieties of tea that are produced in some Chinese provinces are also exported in bulk quantities to all other Asian countries. The most popular are Black tea, Green tea, Brick Tea, Oolong tea and the Scented Teas. Other items that are imported by other Asian countries from China are the Chinese herbal medicine and the demand is continuously not only within Asia but all over the world. Speaking about Chinese export to Asia, one must mention about the Chinese handcrafted items, especially the Feng Shui items are now very popular all over Asia.

Feng Shui items, Chinese porcelain items, potteries are now common items for interior decoration in Asian countries.

CHINA IN ASIA

Another article says that China's astounding economic growth has earned it a place among the main players on the world stage. Sino-Philippine relations go back a long long way. During his state visit in 2005, President Hu Jintao pointed out that bilateral relations began a thousand years ago when Chinese merchants first came to the Philippines

to trade. Data also shows that almost 70 percent of all Filipinos have Chinese ancestry.

We enjoy strong bilateral relations which have become even stronger in the last decade because of the peaceful rise of China. The US has been overtaken by China in terms of being our biggest trading partner. There has been a major shift in Philippine policy in the last ten years. We felt a need to diversify partnerships and create more economic partners, leading to China becoming our biggest trading partner. We've seen unprecedented growth under one decade in bilateral trade.

Filipino-Chinese and the Economy

The enterprising Filipino-Chinese traders now own and run most of the Philippines' largest corporations. In East Asia, over 80 percent of billionaires are Taipans or traders of Chinese lineage. In the Philippines, Filipino-Chinese traders hold a large portion of economic resources. While they comprise only two percent of the Philippine population, they control 50 to 60 percent of non-land share capital in the country. Here, they are the leaders in banking, airlines, property and retail industries.

MADE-IN-CHINA GOODS

It has been said that many Chinese products is popular during Christmas season here in the Philippines. Shoppers would really go straight to Manila’s Chinatown Malls to go buy different gifts, decorations and different things that can be useful to us during this season. There is another option for us shoppers. There is an available 168 mall that has many available Made-in-China goods for us to have. In the 168 shopping mall, a popular destination for shoppers hunting Made-in-China goods, the number of visitors topped 120,000 daily in good days and averaged 100,000 during the Christmas season.

The quality is ok but what is

important is things are definitely cheaper here. See, so many people are shopping here," a Filipino shopper said. The advantage of this shopping mall is that we can buy both local and imported products(mostly China made products) in a much cheaper price. You see that having this kind of facilities can prove that China and Philippines both benefit from each other because we provide them a place to sell their products and also an advantage for us to avail products that we need in a much cheaper price.

Zhou Zongyi, a Chinese immigrant who sells toys, light bulbs and crystal displays, said low-income Filipino families depend on Chinese imports for daily necessities, from things as simple as a broom. Zhou said over a decade the influx of Chinese goods, helped by gradual reduction in tariffs, kept the prices of basic commodities low and made life easier for poor families. "They are able to spend less for quality products. Booming trade does have a positive impact on the low-income families here," Zhou said, adding that because of the booming business opportunities, Chinese retailers ow can be found everywhere in the Philippines, from the far north mountainous region to the restive southern Sulu archipelago.

Zhou is a beneficiary himself. When he immigrated to the Philippines in 1987 as a college graduate, Zhou said he was all alone and brought with him only four HK dollars and a watch. Over the past 20 years, by trading goods first from Taiwan, then from the Chinese mainland, Zhou has become rich and his business expands from Manila to provinces. "As long as the big environment remains good and pro-trade, we traders can

always find a way to survive and make money," Zhou said.

• Definition of Terms ASEAN( Association of Southeast Asian Nation) – regional alliance of ten independent countries that promotes stability and economic growth in southeast Asia.
• Complimentary – The condition of things that compliment one another.
• FTA (Free Trade Agreement) – It had proved to be one of the best ways to open up foreign markets to U. S. exporters.
• Bilateral trade – a trading relationship between two countries that try to balance their trade with each other.
• Influx - A sudden arrival of a large number of people or things.
• Tariffs – A duty levied by a government on imported or exported products.

METHODOLOGY

Research Design

The method used during the study is descriptive. The descriptive research aims to describe the data and characteristics of what is being studied. Through descriptive study the researcher will have a better understanding on what the research is all about and why do we need to study everything about it. This kind of research describes the data and phenomenon of the study. Remember that a descriptive research always answer the questions, who, what, when, where and how.

The Instruments

The group conducted their research in Ongpin, Binondo, Manila regarding their research topic, “How Chinese Products affect the Market Economy of the Philippines”. In Order to conduct the research, they distributed survey sheets to the Chinese community in Binondo. They used writing materials such as pencil or pen and paper to record the date for the said research. They also used the computer with the internet connection to gather additional information about the said topic.

Lastly, they used history and economic books to

get more accurate data about Chinese trade, Market economy and history. Data Collection Procedure We gathered data on how Chinese products affect the Philippines’ economy through surveys. We went to Chinatown, Manila and prepared at least twenty questionnaires to be answered by Chinese people who decided to have their business here in the country. The data includes: where do they get their products, their approximate income per month, and their reasons why they decided to choose Philippines as their business location.

The answered an eight question survey sheet with questions pertaining their business history here in the Philippines. We gathered the data therefore and compiled the result in a systematic manner.

PRESENTATION AND ANALYSIS OF DATA

SUMMARY

The main research was done in Binondo, Manila. The researchers conducted surveys on Chinese businessmen and businesswomen and the products they sell in Ongpin. There were about 19 respondents of middle aged male and female. The questionnaires were distributed to owners of business, mostly merchandisers.

The results show that more than half of the sellers In Binondo are Chinese raised in the Philippines. There remaining half are composed of those who are born in China, Filipinos and Chinoys. The products sold mainly composed of Jewelries (26%), herbal medicine (21%), and other Feng Shui materials (16%) The others composed of clothing, household products, gadgets and books. Most Chinese businessmen still prefer to raise business here in the Philippines even if they will not earn a big profit because their business was handed down to them by parents and Grandparents.

Chinese market affect the Philippine economy because businessmen have not just introduced Chinese products in our country, but also added to the investments here. They pay

taxes to our government. Having this kind of market has also helped in increasing the employment of Filipinos who work here.

Conclusion

All throughout the research we’ve learned that Chinese community continuously conduct their business here in the Philippines, not just in our country but also in the different selected countries the world.

Chinese community is widely known for their own goods that was being sold. We’ve known that it is very convenient to have Chinese products around us because they offer a much cheaper price for the things that we need and because of that they’ve affected the market economy of the Philippines because most Filipinos prefer their own Jewelries(feng shui) because of the predicted luck that it gives also we also prefer some of their medicines because we think that it is very effective for us, lastly like what we’ve said we prefer the low price of their own goods.

We’ve known that we’ve cooperated with the Chinese community because we’ve known that their businesses had existed for a long time ago that they even said in the survey that their businesses were inherited from their family.

RECOMMENDATION

Our group would like to suggest to the readers of our research that:

1. Our research only proves or shows how much contribution the Chinese community in our country had given in order to have progress in our economy. It’s not that we oppose on their stay here but we’re just showing how much help have they given to us.
2. We all know that Chinese products is much more cheaper than any other products, and by that mot Filipinos prefer to buy their products. But we suggest that we should patronize more
   

our own local products.

BIBLIOGRAPHY

1. Raitisoa, Geni. “China in Asia: Sino-Philippine relations”. [Online] Available. January 13, 2010. March 2, 2011. < http://en. radio86. com/chinese-experiences/china-asia-sino-philippine relations>. “Chinatown”.
2. Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. July 22, 2004. Web. March 2, 2011 http://en. wikipedia. org/wiki/Chinatown#Asia.
3. “China’s Export to Asia”. China Export Hub . [Online] Available. March 2, 2011. .

APPENDICES

1. Carmina Francisco -She did title page and appendices
   

of our research/thesis.