The Philippines stands to gain from the current trade tensions between the United States and China, as geopolitical factors could create favorable conditions for the nation's electronics exports.

From 2021 to 2023, electronic products comprised between 49.7 percent and 55.2 percent of the Philippines' total exports, with Integrated Circuits (ICs) constituting about two-thirds of electronic exports and approximately one-third of overall exports during this timeframe.

While the US has historically imported a considerable portion of its electronic products from China, this figure has decreased from 32.5 percent in 2021 to 27.0 percent in 2023. Nearly half of the Chinese electronic goods imported by the US consist of telephone sets, including smartphones, a sector where the Philippines has limited production capabilities.

The manufacturing sector, especially in electrical components, plays a crucial role in driving economic growth and employs around 154,000 individuals.

Nevertheless, this sector is currently confronted with risks associated with debt servicing, stemming from dwindling interest coverage ratios and the potential challenge of generating adequate revenues to meet future debt commitments.

Moreover, local companies encounter difficulties in adjusting to evolving global demands, particularly the shift from intermediate electronic goods to finished products, necessitating substantial capital investment to enhance their manufacturing capabilities.

Despite these obstacles, the Philippines might experience an upsurge in export revenues from other nations as trade dynamics evolve beyond the US-China context.

However, the country will encounter stiff competition from regional players such as Hong Kong, Taiwan, Singapore, South Korea, Malaysia, Vietnam, and Japan, all of which boast well-established electronics manufacturing industries.