LANZHOU, Gansu: Singapore hopes countries will be able to resolve their differences speedily and in a way that can bring benefits to everyone, said its Deputy Prime Minister Teo Chee Hean on Thursday (Jul 5) amid a looming trade war between China and the United States.
Speaking to Singapore media at the end of a trip to China, he also stressed that Singapore's position is one that is based on principle and not because it supports one country or another.
AdvertisementMr Teo’s comments come as the Trump administration is expected to slap tariffs on US$34 billion worth of Chinese goods on Friday. Beijing has also said it would reciprocate in kind.
“We think that a trade war - tit-for-tat - is not going to help any side,” said Mr Teo.
He said China has expressed its view that it does not want a trade war and instead wants to have a situation where it, together with the US and the rest of the world, can follow the World Trade Organisation (WTO) and other trade arrangements to settle any differences over trade.
“But in the meantime, so far as Singapore is concerned, we are pressing on with our trade relations with other countries,” Mr Teo added.
AdvertisementAdvertisementSingapore and China, for instance, are working on an upgrade of its free trade agreement, with Mr Teo saying they hope to make good progress and try to conclude it by this year.
Another free trade agreement is being pursued with the European Union and Singapore is working with ASEAN and its partners on the Regional Comprehensive Economic Partnership trade pact.
The Comprehensive and Progressive Trans Pacific Partnership was also signed by 11 countries after the US pulled out of the agreement.
“So from Singapore’s point of view, these are all the signals we are sending - that we support free trade, rules-based trade, multilateral trade, and we believe this is the best way in which we can foster prosperity for all countries in the world,” Mr Teo said.
He also stressed that Singapore takes a “principled position” on these issues - just like how the country says it believes in following international law and the United Nations Convention on the Law of the Sea for passage rights for ships and aircraft because it is a major trading nation.
“So when we say, we are for multilateral trade arrangements, and free trade and we support those and the WTO, it is not because we support one country or another, but because we think that principle and the way of organising the world is a better way of doing so and will bring prosperity in the long term for all countries,” said Mr Teo.
SINGAPORE-CHINA RELATIONS IN “EXCELLENT SHAPE”: DPM TEO
Reflecting on his visit, which lasted more than a week, Mr Teo said bilateral relations between China and Singapore are progressing well.
“They are good and there are many things we are doing together for mutual benefit,” he said. “In fact, I would say they are in excellent shape.”
In Beijing, Mr Teo met Chinese Vice Premier Han Zheng, who is the new co-chair of the Joint Council for Bilateral Cooperation – the highest level forum between Singapore and China.
Mr Teo, who is the other co-chair, said the agenda was discussed for the upcoming meeting, which will be held in Singapore in September.
This is also preparation for Chinese Premier Li Keqiang’s first visit to Singapore in November.
Cooperation on the Belt and Road Initiative will be discussed, along with the upgrade of the Singapore-China free trade agreement and relations on judicial matters.
It is also hoped that a Memorandum of Understanding can be signed on the Southern Transport Corridor, which is part of Singapore and China’s third joint project – the Chongqing Connectivity Initiative.
Mr Teo, who had visited Guangxi and Chongqing, which are key nodes of the corridor, said the project has been “progressing very well” and has exceeded expectations.
“The Chongqing Connectivity Initiative, coupled with the Southern Transport Corridor, opens up a whole new vista for relations with China,” said Mr Teo.
He noted that while Singapore and China’s first two projects – the Suzhou Industrial Park and Tianjin Eco-City – were focused on specific locations, with experiences there replicated in other parts of China, the Chongqing Connectivity Initiative on the other hand covers many provinces.
A total of nine provinces have expressed interest – from Guangxi in the south, to Gansu in the northwest, as well as the autonomous region of Xinjiang.
ADAPTING TO A NEW AND GROWING CHINA
As China grows, Mr Teo noted that Southeast Asia, including Singapore, will have to adapt and adjust to the opportunities and challenges posed by a new and growing China.
China, in turn, will also have to adapt to the rest of the world.
Mr Teo pointed out that the economic opportunities are very different – with China making investments outside of the country, which could have a positive effect in improving infrastructure across Belt and Road countries, creating greater market opportunities and fostering economic development.
“But China also realises, and they fully understand this - respect for a large, powerful country comes not from how much you show your power but how you use your power in a restrained way with consideration for friends and neighbours and to put that power to the good of the world community and the regional community,” said Mr Teo.
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