In recent years, China and Singapore have worked closely and reached a consensus on promoting free trade and multilateral cooperation. This year, several high-level meetings between the two countries have laid the foundation for China and Singapore to jointly work on the Belt and Road Initiative, strengthen bilateral economic relations, and promote multilateral cooperation in the Asia-Pacific region. In the future, Sino-Singapore cooperation has the potential to be an important driving force for economic integration in the Asia-Pacific Region.

Singapore plays a unique role as a mediator between China and ASEAN countries, helping to promote trade cooperation between them. Despite its small population size, accounting for just 0.8 percent of ASEAN, it has the bloc’s largest trade volume. In 2017, Singapore's exports and imports accounted for 29 percent and 25.4 percent of the ASEAN total respectively.

The same year, trade between China and Singapore was 19.3 percent of that between China and all ASEAN countries. Strong trade ties between China and Singapore also help bind China and ASEAN closer together. Therefore, expanding Sino-Singapore cooperation can nurture multilateral trade cooperation between China and ASEAN, helping to accelerate economic integration in the Asia-Pacific region.

For example, Singapore, an early supporter of the BRI, has an important role to play in the initiative. Speaking in China a few days ago, Chee Hong Tat, Singapore's senior minister for State for Trade, Industry and Education, emphasized how the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity had facilitated bilateral cooperation under the BRI framework, advancing the initiative while also promoting the international free trade system. In three years, the project has made significant contributions to BRI land-maritime development, with 169 cooperative projects signed with a total investment of $26.3 billion.

Promising areas for cooperation

At a time when globalization faces threats from unilateralism and trade protectionism, deepening regional economic integration in the Asia-Pacific region offers a positive force to uphold and enhance the international free trade order. And there are several promising areas for China and Singapore to boost cooperation and contribute to this integration process.

First, China and Singapore should continue to enhance high-level government exchanges and establish new platforms for dialogue. This will help to build trust, mutual understanding and consensus on key international issues. And in turn, political trust will serve as a foundation for deeper economic cooperation, sending positive signals to enterprises of the future stable environment for trade and investment.

Second, China and Singapore should explore new areas for cooperation in investment, trade and infrastructure to fully seize opportunities presented by the BRI. As one of the world’s largest hubs for finance and wealth management, Singapore can play a key role in the BRI, not only helping Chinese investment "go global" but also helping China to attract foreign capital.

Singapore can also act as a credit intermediary, providing convenient channels for China to invest in countries along the BRI. And, while on the one hand, this will aid the implementation of BRI investment and infrastructure projects, on the other hand, it will also help to reduce the geopolitical concerns other countries regarding the BRI, helping to boost the multilateralism, openness and transparency of the initiative.

Third, when it comes to multilateral cooperation, China and Singapore should work to galvanize Asia into a cohesive force for World Trade Organization reform, which remains the best defense against trade protectionism. And the two sides should also work to help balance the interests of various countries and accelerate negotiations for the Regional Comprehensive Economic Partnership agreement. The RCEP is an important starting point to safeguard free trade in the Asia-Pacific region.

Fourth, Singapore has rich experience in trade and investment, which offers an excellent reference for China regarding initiatives such as the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan Free Trade Zone. And there are already many successful cases of joint development projects, including the Suzhou Industrial Park, the Tianjin Eco-city, the Guangzhou Knowledge City, and the Xinchuan Innovation and Technology Park. China and Singapore can build on these successful collaborations to launch more joint projects in the Greater Bay Area, Hainan Free Trade Zone and other regions.

And finally, both sides should further enrich the exchange of talent as these flows of people and expertise not only deepen mutual understanding, but also provide impetus for growth in both countries.

Singapore attracts many Chinese students due to its high-quality education, open immigration policies, and attractive investment environment. In contrast, to date, China has proven less attractive to Singapore students and talent. In light of this, China should continue to encourage students to study in Singapore, but also increase efforts to welcome Singapore students to study in China. And similarly, steps should be taken to attract more Singaporean talent, such as more open visa policies.

By working together in these five areas, not only can China and Singapore tap mutual benefits, but they can also contribute to Sino-ASEAN cooperation and integration of the broader Asia-Pacific region.

The author is the President of Center for China and Globalization.

The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.

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