The Philippines stands to gain from the ongoing trade tensions between the United States and China, as these geopolitical issues may create opportunities for the country's electronics exports.

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

While the US imports a considerable portion of electronic items from China, this share has decreased from 32.5 percent in 2021 to 27.0 percent in 2023. Telephone sets, particularly smartphones, account for nearly 50 percent of the electronic goods imported by the US from China, an area where the Philippines has limited capacity for production.

The manufacturing sector, especially in electrical components, plays a crucial role in economic growth, providing jobs for 154,000 individuals.

Nonetheless, the sector confronts risks related to debt servicing due to diminishing interest coverage ratios and possible challenges in generating enough revenue to manage future debt responsibilities.

Moreover, domestic companies find it difficult to adapt to changing global demands from intermediate electronic goods to finished products, necessitating substantial capital investment to upgrade manufacturing capabilities.

Despite these hurdles, the Philippines might experience a rise in export revenues to other nations as global trade dynamics evolve beyond the China-US relationship.

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