With the recent political and territorial row with China over the Senkaku Islands, some Japanese firms are wondering if it’s worth it to still maintain their operations in China, amidst all the tension and demonstrations of angry Chinese. “No problem,” says the Philippines, “you can move your businesses to our country”.
Trade Undersecretary Cristino Panlilio says they don’t want to appear insensitive to the current troubles between the two countries, but they see it as an opportunity to convince at least 15 of these Japanese companies to move their operations over to the Philippines. They are trying to revive the manufacturing industry that hasn’t been as stellar in the past years. But with rising labor costs in China, as well as their ongoing disputes with other countries, the Philippines might be a more attractive prospect for Japanese businesses to transfer to.
The Aquino administration in the Philippines has been trying to court more international investors by cleaning up corrupt government and business practices, as well as offering huge tax incentives and banking on the economic stability of the nation. It remains to be seen if China, who they are also in conflict with due to the Scarborough Shoal issue, will see this as another encroachment by the Philippines.
[ via MSN News ]
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