SM Lee Hsien Loong at the Suzhou Industrial Park 30th Anniversary Commemorative Event on 25 November 2024
It would be myopic to “write off China”, says SM Lee.
By Joyce ZK Lim, China Correspondent, The Straits Times, 26 Nov 2024
Singapore and China inked a 10-year blueprint for their flagship Suzhou Industrial Park (SIP) project, as Senior Minister Lee Hsien Loong underscored the city-state’s continued confidence in China’s future despite the challenges it faces.
Over the next decade, both countries will grow emerging sectors such as green development, the digital economy and biomedical sciences, with upcoming projects that will help the 30-year-old SIP stay relevant and attract investments from China and beyond, he said in Suzhou on Nov 25.
Speaking at a forum attended by more than 200 government and business leaders, including Chinese Vice-Premier He Lifeng, SM Lee said that even as China faced both domestic and external challenges resulting in slower growth, it would be “short-sighted and unwise” to dismiss the world’s second-largest economy.
China has shown that it can take a strategic perspective, maintaining consistent policies over the long term to ride through transient ups and downs, and Singapore is committed to deepening cooperation with it, including through the SIP, he added.
SM Lee was in the eastern coastal province of Jiangsu – on the first leg of a six-day official visit to China – to take part in a day-long series of activities to commemorate the 30-year milestone of the first intergovernmental project between both countries. It is his first time in China since stepping down as prime minister in May 2024 and being appointed as senior minister.
Launched in 1994 when China was reforming and industrialising its economy, the SIP – a brainchild of Mr Lee Kuan Yew and Mr Deng Xiaoping – was intended as a platform for China to adapt Singapore’s development experiences to its own context, and for Singapore to develop an external wing to its economy.
The SIP has since transformed from low-lying farmland into a modern integrated township housing high-tech industries. The development, spanning 278 sq km and home to 1.17 million people, has been China’s top-ranked economic and technological development zone for the last eight years.
It grew at 5.9 per cent in 2023, outperforming the national average of 5.2 per cent. Other parks modelled after it have also sprung up across the country.
At a bilateral meeting and lunch between SM Lee and Mr He on the same day, the leaders celebrated the SIP’s successes to date, and expressed confidence that the project would continue to serve as a “pathfinder and model for future bilateral cooperation”, said Singapore’s Ministry of Foreign Affairs in a statement.
The leaders articulated how the SIP had benefited each country in different ways.
Mr He, who is responsible for China’s economic and financial affairs, said to SM Lee that through the SIP, China had gained know-how on cooperating with foreign governments to stimulate business activity, and on promoting the development of industrial parks.
He also told the forum that the SIP was an “important window for China’s opening up”, raking in over 5,000 foreign-invested projects and more than US$40 billion (S$53.8 billion) in foreign investments utilised over 30 years.
SM Lee, who had been involved in the early years of the project, highlighted that Singapore had learnt from China the challenges of operating at scale, and the complexity of developing a project in a transitioning economy.
Singapore’s stake in the SIP – and role in working closely with China to see it to fruition – earned the Republic international credibility, he said. “It also helped build up our reputation all over China, opening many doors for us.”
In addition, the project served as a catalyst for the broader Singapore-China partnership, giving both countries the confidence to launch more intergovernmental projects in Tianjin and Chongqing, he added.
Today, almost a half-century after China embarked on its reform and opening up that ushered in a period of rapid progress, China faces a very different set of challenges, said SM Lee.
In addition to domestic factors that will slow down growth, China also faces a more complicated external environment with geopolitical tensions making conditions everywhere less conducive to growth, he noted.
At home, China has had to contend with a maturing economy, a shrinking workforce, and structural problems such as a property overhang, indebted local governments and weak domestic consumption.
And abroad, heightened United States-China competition, which could sharpen with a second Donald Trump presidency, has clouded the outlook for China’s foreign trade and investments, a key driver of its economy.
“Facing these external pressures and uncertainties, China has placed more emphasis on political, social and national security considerations,” said SM Lee.
“Economic development is still of high importance, but it is no longer the pre-eminent national priority. Policy trade-offs are unavoidable, and will imply less exuberant growth for China,” he added.
Even so, he stressed that it would be myopic to “write off China”, whose population’s determination to succeed should not be underestimated.
The world’s second-largest economy retains considerable capacity to grow, with untapped potential in its workforce as people stay healthy for longer, and as an urbanising population leads to productivity gains, he said.
It also has a highly competitive tech industry with market leaders in sectors from electric vehicles to solar panels.
“In fact, in some industries, Chinese companies have been so successful that it is causing concern to China’s trading partners,” he noted.
Said SM Lee: “Singapore continues to have confidence in China’s future. We believe that a growing and prospering China can and should play a major constructive role internationally – contributing to the prosperity and well-being of other countries, and a stable international order where all countries big and small coexist peacefully together.
“We therefore wish China well in its efforts to transform its economy, integrate into the global economy, and enhance win-win relations with regional partners and other major powers.”
For its part, the SIP would demonstrate China’s continued openness to the world, and its desire to welcome investors, he noted. “In an era of uncertainty and anxiety, it will be a beacon of cooperation and hope.”
In his speech at the forum, Vice-Premier He described the anniversary as marking a “new starting point” as both sides work to attract more investments and develop innovative industries.
Both leaders witnessed the signing of the 10-year blueprint and a separate agreement facilitating digital trade cooperation at the SIP. They also planted a persimmon tree by the park’s iconic Jinji Lake – mirroring a tree-planting that had been carried out at the Singapore Botanic Gardens two weeks prior by Deputy Prime Minister Gan Kim Yong and Chinese Vice-Premier Ding Xuexiang.
During his visit, SM Lee toured the exhibition centres of two major projects in the biomedical and green development sectors, which Singapore companies are jointly developing at the park.
The first is the China-Singapore Life Sciences Park, or Biosparc, which Singapore’s investment company Temasek is working on with the SIP.
It aims to build on the SIP’s strengths in the biomedical sector, providing research and development centres and manufacturing facilities to advance cutting-edge innovations from drug development and medical devices to artificial intelligence-driven medical technologies.
The park is currently under construction and expected to launch in 2026. It will occupy a total land area of about 21 football fields (116,000 sq m), with an estimated total investment value of about 800 million yuan (S$148 million).
The second is the China-Singapore Green Digital Hub, which Keppel and Surbana Jurong are developing with Sungent Holding Group, a Chinese state-owned enterprise based at the SIP.
The project is positioned as a trailblazer for future net-zero industrial districts in Singapore and China, and a pilot zone for decarbonisation solutions.
It aims to attract industries in the green and digital spheres, in facilities with ambitious sustainability goals that cover the life cycle of the entire industrial district. The project will span 170,000 sq m, and is expected to be completed in 2027.
These new joint projects in the SIP will continue to “strengthen its global relevance and role as a platform for Singapore and China to showcase international standards and contribute to global development”, said Minister-in-charge of the SIP Chan Chun Sing in a statement from the Ministry of Trade and Industry.
After wrapping up his programme in Suzhou, SM Lee left for Beijing, where he will meet Chinese President Xi Jinping and attend a dinner hosted by the Chinese leader.
He will also meet Mr Wang Huning, the chairman of the Chinese People’s Political Consultative Conference, China’s top political advisory body. Mr Wang is fourth-ranked in the Politburo Standing Committee, the country’s apex decision-making body.
SM Lee will conclude his China visit in Shanghai, and return to Singapore on Nov 29.
Accompanying him on the trip are his wife, Mrs Lee, Foreign Minister Vivian Balakrishnan, Education Minister and Minister-in-charge of the SIP Chan Chun Sing, as well as Senior Ministers of State Sim Ann and Low Yen Ling.
Singapore-China cooperation ‘especially valuable’ in troubled world, Senior Minister Lee Hsien Loong tells President Xi Jinping
‘You are the Chinese people’s old friend, a good friend,’ President Xi tells SM Lee
By Tan Dawn Wei, China Bureau Chief, The Straits Times, 27 Nov 2024
BEIJING – In an uncertain and troubled world, cooperation between Singapore and China is “especially valuable”, for the benefit of their respective populations, Senior Minister Lee Hsien Loong told Chinese President Xi Jinping as the two leaders met in Beijing on Nov 26.
On his part, Mr Xi also called for the bilateral relationship to be strengthened, saying that both countries should deepen their collaboration and “make new and greater contributions to regional peace and prosperity”.
It was the first meeting between the two statesmen since Mr Lee assumed his new role as senior minister, after stepping down as prime minister in May.
He is on a six-day official visit to China to commemorate the 30th anniversary of Singapore and China’s flagship government project, Suzhou Industrial Park (SIP), and to meet Chinese leaders.
Speaking ahead of a dinner hosted by Mr Xi, SM Lee noted that tensions between major powers have intensified and that countries are emphasising national security and supply chain resilience, instead of economic integration and international multilateral cooperation.
“And it makes it all the more important in such an environment for like-minded countries, big ones as well as small ones, to work together to develop our cooperation to the best of our ability for the benefit of our peoples,” SM Lee said to Mr Xi.
Just overnight, US President-elect Donald Trump had declared new tariffs on China, Canada and Mexico when he takes office on Jan 20, with the news quickly roiling markets over fears of a global trade war.
The Chinese leader, too, called for more collaboration as Singapore and China have elevated their bilateral relationship in 2023, and as the two countries mark 35 years of diplomatic ties in 2025.
SM Lee is visiting the country for the first time in his new capacity, though he is hardly a stranger. In his 20 years as Singapore’s prime minister, he had visited China 14 times, making him one of the most frequent visiting foreign leaders.
Mr Xi said he was happy to see SM Lee again. “In any case, we used to meet often in the past,” the President said, smiling. The last time they met was in March 2023, when SM Lee also visited the Chinese capital.
On Nov 26, Mr Xi welcomed SM Lee at Diaoyutai State Guesthouse, a sprawling royal garden used to host foreign dignitaries.
Both men looked relaxed and chatted as they walked into a meeting room, with SM Lee saying that he took the high-speed rail from Suzhou to Beijing, a four-hour ride.
“Very comfortable and very convenient,” SM Lee said in Mandarin to Mr Xi as they took their seats across from each other.
Welcoming Mr Lee in his new role as senior minister, Mr Xi paid him a compliment: “Internationally and in Asia, you are considered a veteran politician.”
Whether it is the achievements that Singapore has made or in promoting international or regional cooperation, SM Lee has made important contributions, Mr Xi said.
He also congratulated SM Lee on the successful transition of power in the Singapore leadership in May.
“You are the Chinese people’s old friend, a good friend, and you have had a long-term interest in and support for China-Singapore cooperation,” said Mr Xi, who later hosted Mr and Mrs Lee to dinner.
SM Lee started his China visit in Suzhou in Jiangsu province. It came shortly after his working visit to Boston and New York in the US, which had just sewn up a presidential election in which Trump was re-elected.
On the SIP, Mr Xi said the project has set a benchmark for the cooperation of the two countries and is “also a testimony to Singapore’s deep involvement in China’s reform and opening up”.
In turn, SM Lee said he was happy to be back in China, and noted that Mr Xi had met Prime Minister Lawrence Wong recently at the Asia-Pacific Economic Cooperation (Apec) meeting in Lima, Peru.
Taking stock of his visit to Suzhou on Nov 25, SM Lee said he was proud to see the park thriving and prospering and “to know that it has succeeded beyond our wildest expectations”.
He said he was also very glad that “SIP has played a valuable role in China’s economic development and transformation and continues to do so today”.
In a light-hearted moment, SM Lee said that while the industrial park has modernised over the decades and its gross domestic product has gone up 10 times, there remains one traditional product that continues to be exported from the land.
“I saw a sign for it at the restaurant at the hotel yesterday, and it says, ‘Yangcheng Lake hairy crab’,” he said, to laughs from Mr Xi and his colleagues, who included director of the Chinese Communist Party’s Central Foreign Affairs Commission Office and Foreign Minister Wang Yi, Commerce Minister Wang Wentao, and Mr Zheng Shanjie, chairman of China’s economic planning agency, the National Development and Reform Commission.
Yangcheng Lake, located in the northern part of the industrial park, is known for the prized delicacy.
The last time SM Lee was in China in March 2023, both countries upgraded their relationship to one that is described as an “all-round, high-quality, future-oriented partnership”.
That trip was also seen as an opportunity for Mr Lee to let Chinese leaders know that Mr Wong would soon take over as prime minister.
Mr Wong, then still deputy prime minister and finance minister, soon made an official trip in May 2023, when he met Premier Li Qiang, among other leaders.
While Mr Wong has yet to make an official visit to China since taking over as prime minister, he recently met Mr Xi on the sidelines of the Apec meeting. Both leaders had discussed cooperation in the green and digital economies, as well as regional and international developments.
A statement by the Singapore Foreign Ministry said both SM Lee and Mr Xi also discussed regional and international developments at their meeting, while Mr Xi updated SM Lee on China’s domestic and external priorities.
“Both sides reaffirmed the importance of maintaining peace and stability in the region, as well as the key role of a free and open international trading system to the development of the global economy and both countries’ development,” said the statement.
On Nov 26, SM Lee also met Mr Wang Huning at the Great Hall of the People in Beijing. Mr Wang is chairman of the Chinese People’s Political Consultative Conference (CPPCC), the top political advisory body. He is ranked fourth out of seven in the apex decision-making Politburo Standing Committee.
Mr Wang noted that SM Lee has visited China many times and has had close interactions with Chinese leaders. China is confident that SM Lee will continue to play an important role as senior minister in promoting bilateral ties, he said.
“You have said that Singapore-China cooperation, which is in line with the priorities of each country and the needs of its people, should evolve with the times. We very much agree,” said Mr Wang.
China is willing to deepen cooperation with Singapore in all areas and bring prosperity to the region, he said.
SM Lee described relations as being in “very good shape”, and said he looked forward to “catching up with old friends and to learn about recent developments in China”.
He said that both countries have good people-to-people ties, noting a 30-day mutual visa exemption that was introduced in February 2024.
On the morning of Nov 26, SM Lee and the Singapore delegation also visited the electric vehicle plant of tech company Xiaomi and were hosted by its founder, chairman and chief executive Lei Jun, as well as the senior management team.
SM Lee will end his visit in Shanghai, where he will meet and be hosted to lunch by Shanghai party chief Chen Jining, and attend a reception for overseas Singaporeans.
SM Lee is accompanied by Mrs Lee, Foreign Minister Vivian Balakrishnan, and Education Minister and Minister-in-charge of the SIP Chan Chun Sing. Also in the delegation are Senior Minister of State for Foreign Affairs and National Development Sim Ann, and Senior Minister of State for Trade and Industry and Culture, Community and Youth Low Yen Ling.
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