logo
PM Wong to visit China, where he will discuss cooperation to strengthen rules-based order

PM Wong to visit China, where he will discuss cooperation to strengthen rules-based order

Straits Times9 hours ago

PM Lawrence Wong said he hopes to build closer ties with Chinese leaders, especially with President Xi Jinping and Premier Li Qiang. PHOTO: MDDI
PM Wong to visit China, where he will discuss cooperation to strengthen rules-based order
SINGAPORE – The world is in a state of flux, and countries big and small have to do their part to manage geopolitical tensions and rivalry carefully so as to minimise the risk of conflict and war, said Prime Minister Lawrence Wong.
In an interview with Chinese state broadcaster CCTV ahead of his first visit to China as prime minister, he said a key priority is to discuss broader regional and global developments with Chinese leaders, and explore how both countries can work together to strengthen multilateralism and the rules-based international order.
He also said that he hopes to build closer ties with the Chinese leaders, especially with President Xi Jinping and Premier Li Qiang.
His visit from June 22 to June 26 was announced on June 20 by Chinese foreign ministry spokesman Guo Jiakun, who said PM Wong will be meeting Mr Xi, Mr Li and Mr Zhao Leji, chairman of the National People's Congress.
The visit comes as strategic rivalry between the United States and China has triggered supply chain disruptions, technological decoupling, and growing fears that other countries may eventually be forced to pick sides. The US has also imposed sweeping tariffs on much of the world, including Singapore, with particularly high duties on China.
'We are in the midst of a very messy and unpredictable transition,' PM Wong said in the interview, aired on the CCTV programme Leaders Talk on June 20. He noted that the US had helped shape the global order after World War II – an order that benefited all countries, including China and the US itself – which is now under strain as America signals a desire to pull back from it.
'There is no country in the world today that can replace the US, no one. So what is our alternative? I think frankly, at this stage, no one knows the answer,' he said.
PM Wong said it will take time for a new equilibrium to emerge. Unlike the post–Cold War era, which was dominated by a single superpower, he believes the new global order will be shaped by countries both large and small.
But in the meantime, the transition is potentially dangerous. 'Without clear global leadership and coordination, there are many things that can go wrong in this world,' he warned, urging all countries to manage geopolitical tensions and rivalry carefully to minimise the risk of conflict and war.
⁠PM Wong will emphasise the importance of upholding a rules-based multilateral order when he attends a World Economic Forum event in Tianjin next week. The event, officially called the ⁠⁠Annual Meeting of the New Champions, is commonly known as Summer Davos.
In the interview with CCTV, he acknowledged that today's multilateral system is not perfect, but said it should be reformed and improved – not abandoned – to better serve all countries.
Asked about his top concern for Singapore, PM Wong said the increasingly fragmented global environment poses challenges for a small, open economy like Singapore, which depends heavily on trade.
But while global supply chains are being reshaped and countries seek greater self-sufficiency, he stressed that trade will continue, albeit in new configurations.
Singapore, he said, must stay competitive and relevant to remain a key node in shifting trade and investment flows, and is working with like-minded partners to uphold free trade and a rules-based system.
Within Asean, efforts are under way to deepen integration and lower trade barriers. Singapore is also strengthening ties with key Asian economies such as China, India, Japan and South Korea, while reaching out to further markets in the European Union, Latin America, and Africa.
'I believe in every crisis, there will always be opportunities, and so we are finding ways to seize new opportunities for ourselves and for other countries,' he said.
Mr Wong described the relationship between Singapore and China as 'a very close and steadfast partnership', nurtured over generations of leaders.
'So I hope to do the same in my visit with Chinese leaders, especially with President Xi and Premier Li, and I think the close ties at the leadership level sets the tone for the overall relationship.'
A key objective of his trip to China will be to reaffirm a shared commitment to bilateral cooperation, as Singapore and China mark the 35th anniversary of diplomatic ties. The cooperation led to the three government-to-government projects of Suzhou Industrial Park, Tianjin Eco-city and Chongqing Connectivity Initiative.
Asked if he envisioned introducing a new project during his term, PM Wong said that he does not consider existing projects as completed and done with, but platforms that can continually host new areas of cooperation. This is in line with bilateral ties, which were upgraded in 2023 to an All-Round⁠ ⁠High-Quality Future-Oriented Partnership.
PM Wong is no stranger to China, having visited almost every year since entering politics in 2011. He described the transformation he witnessed in China as '⁠nothing short of an economic miracle'.
In the interview, he expressed confidence in China's economy despite global headwinds, citing its strong track record and capable leaders who are willing to adapt.
Most of all, he said, his optimism stems from the determination of the Chinese people to keep moving forward and improve their lives.
'It's a remarkable transformation, and I continue to wish China every success in its journey of modernisation,' he said.
Yew Lun Tian is a senior foreign correspondent who covers China for The Straits Times.
Join ST's WhatsApp Channel and get the latest news and must-reads.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Asean walks trade war tightrope
Asean walks trade war tightrope

Business Times

time22 minutes ago

  • Business Times

Asean walks trade war tightrope

WITH its pauses and U-turns, Donald Trump's tariff agenda continues to defy firm forecasts. Still, it remains worthwhile to explore how the US president's trade wars have impacted South-east Asian economies and could continue to do so going forward. South-east Asian economies are strategically important to both China and the United States as trading partners, geographical interests and military bases, particularly for the US. Yet, for the past decade, the region has repeatedly found itself caught in the middle as these two global powers compete for economic supremacy. With a population of over 690 million – or around 8 per cent of the world's population – Asean accounts for over 3.5 per cent of global gross domestic product and 7.4 per cent of global exports, demonstrating the bloc's increasing importance to the world's economic activity. Asean is China's largest trading partner, while ranking as the US' fourth-largest trading partner, after Mexico, Canada and China. First Trump term: Unintended beneficiaries During Trump's first presidency, tariffs of 10-50 per cent were imposed on various categories of Chinese products, primarily aimed at addressing concerns over intellectual property theft, forced technology transfers, and the substantial trade deficit with China. While tariffs were subsequently halved on the premise that China would import an additional US$200 billion from the US, only around US$30 billion in additional US goods were actually imported to China between 2020 and 2024. The tariff on Chinese imports created an unexpected opportunity for Asean and Mexico through supply chain realignment. Vietnam and Mexico emerged as particular beneficiaries. Vietnam's exports to the US surged from just US$49 billion in 2018 to US$137 billion in 2024, while Mexico's exports rose from US$344 billion to US$506 billion over the same period. The rapid increase can be attributed to the relocation of Chinese manufacturing facilities and rerouting of goods, reflected in the parallel rise in goods imports from China to both Asean countries and Mexico, predominantly in partially finished or finished goods. China's supply chain realignment strategy proved remarkably successful. Mexico is now the largest exporter to the US, replacing China in 2023, while the Association of Southeast Asian Nations (Asean) now ranks as the fourth-largest exporter to the US after Mexico, China and Canada. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Strategic positioning and political complexity This shift was hardly surprising, as Asean has long been strategically important to China from multiple angles: as manufacturing bases, investment destinations and for political influence. The region's significant overseas Chinese population and close proximity to China have helped Asean countries grow closer to the country over the years. Since 2018, the bloc has become a critical hub for Chinese companies seeking to mitigate tariff exposure from the US-China trade war. Chinese firms have rerouted exports through Asean or established factories in countries like Vietnam, Cambodia, Thailand and Malaysia to bypass tariffs, making the definition of 'origin of goods' and 'value-adding' increasingly opaque. Deja vu: The second Trump term Fast-forward to 2025, and investors face a deja vu moment as Trump's second presidential term took off with the strongest push yet for broad-based tariffs, maintaining significant focus on China. This reflects growing concerns about America's enormous total trade deficits with the world, which have grown to just shy of US$1 trillion. The US now understands the implications of imposing tariffs on China alone – the supply chain realignment has rendered previous tariffs ineffective in reducing the trade deficit. Asean economies once again find themselves caught in the crossfire between the world's two largest powers. This time, however, the implications are far more significant. The realignment of China's manufacturing supply chains has created jobs and entire industries over the past five years. Another shift could unwind parts of this manufacturing ecosystem and threaten people's livelihoods. The geopolitical balancing act There is also a broader geopolitical challenge. With escalating US-China tensions, Asean faces increasing pressure to align with one side or the other. Thailand and the Philippines, as examples, are notably taking a more muted stance towards geopolitical alignments. This balancing act is particularly delicate – both countries host existing US airbases while also relying heavily on China for investments, tourism and manufacturing. Given China's strong dominance as a trade partner and investor in the region, plus with the US serving as both a major export destination and source of political influence for many Asean economies, this equilibrium requires careful navigation. Asean must continue to strengthen intra-regional ties and leverage trade deals such as the RCEP and CPTPP to insulate itself from global volatility. The path forward for Asean economies must be both strategic and deliberate to safeguard the region's long-term interests. The group should focus on maintaining a delicate balance between the two global superpowers by adopting a neutral stance, while simultaneously strengthening internal resilience through enhanced intra-regional trade and improved competitiveness in manufacturing, trade and foreign direct investments. To prepare for potential geopolitical decoupling, Asean should diversify its network of economic partners and deepen institutional integration, drawing lessons from the European Union to strengthen its collective influence on the global stage. For businesses and investors, this evolving landscape presents dual-edged prospects: risks of supply chain disruptions, but also significant opportunities to position Asean as a key hub in future global trade and supply chain. Implications for bond investors While the temporary pause in new trade tariffs has brought some relief to bond investors, we view Trump 2.0 as bringing unprecedented growth risks for Asean. We expect a further economic decoupling between China and the US, which will negatively impact global growth as trade declines. In the near term, this uncertainty warrants further rate cuts from Asean central banks as inflation stabilises, growth slows and unemployment inches higher. Local currency bonds should therefore remain well-supported. We also expect to see some net international investment position flows from US assets returning to Asia, lending further support to local currency asset prices and Asian currencies. However, we remain mindful of the longer-term effects on potential economic growth from supply chain realignment and global slowdown, which can have lasting impacts on Asean economies. The writer is portfolio manager, Asia Fixed Income, at M&G Investments

China is winning over Central Asia – but its growing influence could fuel a backlash
China is winning over Central Asia – but its growing influence could fuel a backlash

Straits Times

time2 hours ago

  • Straits Times

China is winning over Central Asia – but its growing influence could fuel a backlash

Chinese President Xi Jinping and five Central Asian leaders signed a treaty of 'permanent good neighbourliness' and friendly cooperation at this week's China-Central Asia Summit in Astana, Kazakhstan. PHOTO: EPA-EFE – While some Western countries have viewed Chinese electric vehicles (EVs) as threats to their domestic industries and put up tariffs on these Chinese exports, Central Asia has welcomed them. Brands from Zeekr and Chery ply the streets of Dushanbe, the capital of Tajikistan, where all taxis must be electric by September 2025. Kazakhstan saw a 36-fold rise in the sale of Chinese EVs in 2024, from 2023. BYD's first plant in Central Asia, in Uzbekistan, began production in January 2024. Join ST's Telegram channel and get the latest breaking news delivered to you.

Despite 1880's closure, private members' club 67 Pall Mall is expanding
Despite 1880's closure, private members' club 67 Pall Mall is expanding

Business Times

time8 hours ago

  • Business Times

Despite 1880's closure, private members' club 67 Pall Mall is expanding

[SINGAPORE] Private members' club 1880 may have suddenly closed and gone into liquidation this week, but that is no dampener for another player here. 67 Pall Mall, which started operating in Singapore from 2022, has just signed a lease to expand to Shanghai – its first Chinese outpost. The private members' club with a focus on fine wine will open next year at 7 Donghu Road, in Shanghai's historic Xuhui district. It will occupy the 100-year-old French Renaissance-style Grand Mansion – or da gongguan – built by British businessman Raymond Joseph. Grant Ashton, who founded 67 Pall Mall in London in 2015, said that opening a club in Shanghai allows it to connect with the wine community in China, which 'has long been one of the most dynamic and rapidly growing wine markets in the world'. On entering the country despite its economic woes, Ashton said the club's business model offering access to 'one of the largest lists of wines in the region at reasonable prices' has withstood economic ebbs and flows, including extended closures during the pandemic. 'Our proposition is new to the market in Shanghai and China – one that represents unprecedented value and access to fine wines.' He is not concerned about the sudden collapse of 1880 either. The club had also abruptly closed its Hong Kong branch on May 30. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up 'Our membership model has served us well for 10 years,' he told The Business Times. 'We are a very different club with a singular focus, and everything about 67 Pall Mall revolves around the appreciation of wine.' In Singapore, the club occupies 15,000 square feet (sq ft) across the 27th and 28th floors of Shaw Centre in Scotts Road. The space used to be the penthouse dwelling of the late movie magnate Runme Shaw, where he threw extravagant soirees and wined and dined luminaries and celebrities. The club here is 67 Pall Mall's third, after London and Verbier in Switzerland. It had previously announced upcoming club openings in Melbourne, Australia, as well as in France's Bordeaux and Beaune. Members have access to its clubs around the world. Entrance to the Grand Mansion. PHOTO: 67 PALL MALL As for the Shanghai club, it will comprise around 14,300 sq ft and carry a wine list of 5,000 by the bottle and 1,000 by the glass from 40 countries. The mansion's grandeur will be showcased and it will include spaces such as a Grand Salon, a sunroom overlooking the gardens, a whisky bar and multiple private rooms. The Grand Mansion is a former diplomatic landmark that has housed various bureaus and served as the residence of some of China's prominent magnates, including industrialist and banker Sheng Zhushu. It has also hosted several high-profile events, including negotiations between former US president Richard Nixon and former Chinese premier Zhou Enlai, as well as the Asia-Pacific Economic Cooperation summit in China in 2001 attended by then US president George W Bush.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store