MANILA: Days before China's entry into the World Trade Organization (WTO), which is expected this weekend, a newly published book titled "Inside Chinese Business - A guide for managers worldwide" is a best seller in the largest book chain store in the Philippines.

The book is "enriched by productive consulting work with global firms reaping success in China," said an article on the front page of the country's leading newspaper, the Philippine Daily Inquirer, on Sunday.

"It may not transform you into 'becoming Chinese,' but it will give you the right 'Chinese mindset.'"

That is exactly what Philippine business people need in order to gain a lasting and rewarding relationship with their new business partners from China.

More and more Philippine business people are setting their sights on business opportunities in China, especially after the September 11 terrorist attacks on the United States further dampened prospects for the global economy.

China's economy has managed to grow fairly rapidly in recent years and is targeting an annual growth rate of 7 per cent for the next five years.

But most Philippine companies, especially those in export sectors, are facing lay-offs, plunging profits and expansion cutbacks caused by the global economic downturn.

Thus, as China's 1.2 billion-population market opens up to the world after its entry into the WTO, the fast-growing incomes and a high savings rate of nearly 40 per cent makes their country's biggest neighbour attractive to Philippine business people.

Philippine President Gloria Macapagal-Arroy said during her trips to China at the end of October that she is expecting more Philippine products to enter the Chinese market and is looking forward to more investment from China in the Philippines.

Some companies run by Filipino-Chinese have started cashing in on the opportunities. Owners of the snack food and chocolate manufacturing giant Universal Robina Corp (URC), the popular local fast food chain Jollibee, the successful shopping mall SM and others have tested the water in China's market and intend to increase their investment.

URC Executive Assistant Joan Cosico said that China has always been considered as a rewarding area for expansion.

Some financial analysts have predicted that the sheer size of the Chinese capital markets and the deep pool of savings will push Chinese business people to go beyond the nation's borders in searching for investment opportunities.

Therefore, the Philippines await more of this investment.

In the first half of the year, investment from China jumped 58 per cent over the same period last year, reaching 328 million pesos (US$6.3 million), making China the second largest investor in the Philippines.

While TV interviews and opinion columns in newspapers are discussing how the Philippines should beef up to face the opportunities and challenges posed by China's entry into the WTO, one certainty is that the impact of bilateral trade and investment will contribute to the future prosperity of the Philippines.

Xinhua