More attempts by countries to 'weaponise economic interdependencies': PM Wong

BEIJING: Amid current geopolitical contests and rivalries, there have been "more and more attempts" by countries to "weaponise economic interdependencies", Prime Minister Lawrence Wong said on Wednesday (Jun 25).

Countries are also identifying “potential choke points” as leverage, all in the name of security and resilience, he added. 

Speaking to journalists before meeting Singaporeans at a reception in Beijing, Mr Wong was responding to a question about whether he discussed with Chinese leaders how to move forward from the US tariff situation. 

“But sometimes, the more one country does this … it incentivises others to find alternative solutions and sources,” said the prime minister. 

"There will always be alternatives, be it high-end semiconductor chips or rare earth materials.

“So what may appear to be leverage today, may very well disappear, or the leverage may be minimised down the road. And I think this dynamic is playing out even today,” he added. 

Whatever controls or restrictions are imposed on China, Mr Wong said he was quite sure China would find a way to navigate its way around them. 

This is his first trip to China as prime minister – holding meetings with Chinese Premier Li Qiang and Chinese President Xi Jinping, as well as speaking at the World Economic Forum Annual Meeting of the New Champions, or Summer Davos. 

The US tariffs are an evolving situation, he said, adding that "no one really knows what will happen next". 

Singapore hopes that the US and China will continue to engage each other constructively and that both sides can find a way forward, said Mr Wong. 

The Association of Southeast Asian Nations (ASEAN), including Singapore, has been engaging the US, he said, adding that he hopes the tariffs on ASEAN countries will come down closer to 10 per cent.

Even at 10 per cent, this is still three times higher than what the tariffs used to be, said Mr Wong. 

“So we have to be realistic. We are going to be in a world where barriers are higher and we will have to find ways to navigate around this new environment.” 

SINGAPORE AN "HONEST BROKER"

When asked about his discussions with Chinese leaders on geopolitical tensions, including conflict in the Middle East, Mr Wong said Singapore wants to be friends with everyone, but having good relations is “not just a matter of being friendly, saying polite words, handshakes and hugs”. 

While good rapport is important, having good relations means "building on substance", he said. 

“It means Singapore … must have relevance. And we must be able to offer something on the table to our partners. And then working with them, we can identify areas of shared interests to collaborate on,” said Mr Wong. 

When other countries are keen to gain or learn something from Singapore, it can engage different countries and deepen collaboration, he added. 

Singapore can also add value by being an “effective interlocutor”, said the prime minister, noting the country’s reputation as an “honest broker”. 

"People trust us to facilitate conversations, even among parties who may not always have the same views ... We can help bring people together and strengthen partnerships," said Mr Wong.

"This is more important today in a world where there are growing tensions, in a world that's facing pressures to become more separated." 

Commenting on his meetings with the Chinese leaders, Mr Wong said he had “very good conversations” with Mr Li and Mr Xi, adding that they were able to discuss not only bilateral issues but also wider regional and global developments, exchanging views “quite candidly and openly”. 

He also invited both Chinese leaders to visit Singapore.

Noting that he is “not unfamiliar” with China, Mr Wong added that there is a shared commitment from all sides to advance cooperation between Singapore and China. 

With the Suzhou Industrial Park project marking its 30th anniversary in 2024, the project is “very successful” and there is potential for this to be done in a third country, said Mr Wong.

Singapore and China intend to jointly develop a third-country training programme for ASEAN countries and Timor-Leste.

It will focus on key areas such as clean energy transition, sustainable urban development, climate resilience and support for the ASEAN power grid.

“This is yet another way where China and Singapore can come together, jointly develop causes for the region and help build up the capabilities of our fellow ASEAN member states,” said Mr Wong.