US-China trade war to disrupt ICT sector in Philippines
According to Economist Intelligence Unit (EIU) escalating trade tensions between China and the United States will disrupt the Philippine economy. It said the trade war will hurt most of the country’s information and communications technology (ICT) sector due to its reliance on China for shipments of ICT intermediate components. The EIU study released Thursday said the Philippines won’t benefit massively from any shift in ICT export supply chains owing to its weak regulatory environment. It added that the country’s underdeveloped digital ecosystem will hinder investments. The Philippines has the slowest internet speeds Asia. But the country’s automotive sector will ‘mildly’ benefit from the trade war due to its strong auto components manufacturing and export sector, built largely to support Japanese supply chains. The trade war will have no impact on the Philippines’ textile and manufacturing industries. The study looks at how the trade war will impact various sectors in China’s neighboring countries.
