Chinese clothing firms relocating to the Philippines

Two major apparel manufacturers in China, which supply to major top-of-the-line global brands, are relocating some of their operations in the Philippines because of the high costs in China and in anticipation of the passage of the proposed Save Our Industries Act, which seeks to grant zero or preferential tariff to clothing manufactured in the Philippines using US-made textile and fabrics.

According to the Manila Bulletin, Board of Investments executive director Fe Agoncillo-Reyes said these firms are Japanese-owned Zepher and Suzhou Tianyuan Garments. Both have big manufacturing operations in Shanghai. According to Reyes, these two companies have complained of the high cost of doing business in China. Further, some of their buyers have also expressed preference to source from the Philippines.