Bold opening statement: Singapore and China are boosting their partnership to new heights, signing 27 agreements to deepen cooperation across finance, green and digital development, and people-to-people ties. But here’s where it gets controversial: can such expansive collaboration sustainably balance national interests with rapid global shifts? Let’s unpack what happened and why it matters.
Singapore and China wrapped up their 21st Joint Council for Bilateral Cooperation (JCBC) in Chongqing, unveiling a broad package of MOUs and agreements that expand cooperation beyond last year’s 25 deals. The announcements span financial connectivity, green finance, digital economy, and educational exchanges, signaling a multi-faceted bid to integrate economies and societies more closely.
The JCBC, the highest-level bilateral forum between the two nations, was co-chaired by Singapore’s Deputy Prime Minister Gan Kim Yong and China’s Vice Premier Ding Xuexiang. In his opening remarks, Gan highlighted the challenging global backdrop—geopolitical uncertainties, rapid tech changes, and global economic headwinds—and underscored the importance of ongoing collaboration to seize opportunities for Singaporean and Chinese businesses and citizens alike. Ding affirmed steady progress in China-Singapore relations across economic, digital, and people-to-people domains, emphasizing tangible outcomes.
A centerpiece of the meeting is the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI), now in its tenth year. Initiated in 2015, the CCI stands alongside the Suzhou Industrial Park and the Tianjin Eco-City as flagship government-to-government projects aligned with China’s Belt and Road Initiative, western region development, and the Yangtze River Economic Belt. Over the past decade, Singapore’s investments in Chongqing have more than doubled—from US$5.7 billion in 2015 to US$12.7 billion in 2024—and the CCI has facilitated US$21.8 billion in cross-border financing for Chongqing and western China through Singapore.
Gan described the CCI as a joint vision to strengthen western China–Southeast Asia connectivity, with potential to broaden into additional markets and sectors in the coming decade. The partners signed an updated vision and implementation framework for the CCI, outlining long-term goals for the next phase. New emphasis areas include education, technology, and healthcare, while core priorities remain financial services, aviation, transport and logistics, and information and communications technology (ICT), along with the CCI-New International Land-Sea Trade Corridor (CCI-ILSTC).
Specific ambitions include developing Chongqing and Singapore as aviation hubs, harmonizing electronic bills of lading rules, improving logistics to extend trade corridor reach, and sharing healthcare best practices. Both sides will push digital and green development within the CCI-ILSTC, which supports the flow of goods such as automotive parts, electronics, and chemicals between western China and Southeast Asia via Singapore. Container volumes have surged nearly tenfold since 2019, with carbon-tracking measures and support for green finance and digital trade on the agenda.
Air connectivity has also strengthened, with 24 weekly flights among Singapore Airlines, Air China, Chongqing Airlines, and West Air, exceeding pre-pandemic levels. The JCBC also announced new train services linking Chongqing to Central Asia and Southeast Asia, illustrating how Singapore’s logistics expertise and Chongqing’s inland gateway position can overcome geographical constraints and create new trade routes.
Beyond the CCI, the JCBC produced a slate of financial and digital economy deliverables: DBS was designated as Singapore’s second RMB clearing bank to bolster offshore RMB activity, joining ICBC Singapore as a historic RMB clearing partner. A pilot program will let Singaporean travelers open and top up e-CNY wallets for merchant payments in China by the end of 2025. The partners also committed to deeper green finance and digital asset cooperation, updating the Multi-Jurisdiction Common Ground Taxonomy, expanding capital-market connectivity (including ETF links and support for secondary listings), and upgrading trade-security arrangements between the two customs administrations.
Trade facilitation gains included stronger Authorized Economic Operator programs, exchange of best practices for Free Trade Zones, and improved customs clearance. In food trade, China agreed to ease market access for Singaporean processors exporting processed meat, while Singapore approved exports of processed meat from Chongqing, Heilongjiang, and Hunan. Enterprise Singapore and Suzhou Industrial Park inked a green development-focused MOU, and Singapore signed a new accord with Tianjin to promote cooperation in advanced manufacturing, shipping, biomedical sciences, and tourism.
Science and innovation featured prominently with MOUs between Singapore’s National Research Foundation and China’s Ministry of Science and Technology, and between ASTAR and Tsinghua University to foster research collaboration and knowledge sharing. The National Metrology Centre of Singapore and China’s National Institute of Metrology renewed their memo to continue joint work in measurement science.
The agreement set also encompassed enhanced cooperation in health, legal services, sports, youth, and cultural exchanges, reflecting a broad-based ambition to align development priorities and contribute to regional stability. Ding underscored the importance of deepening collaboration and leveraging shared cultural affinities to sustain momentum across multiple domains.
Gan reflected on the long-standing, trust-based relationship between Singapore and China, noting that while the two countries have different priorities and interests, they consistently identify common ground for mutual benefit. He likened the JCBC to a reunion of old friends who, despite changes over 35 years, continue to build practical, outcome-oriented partnerships that benefit businesses and people alike.
What this means going forward: the strengthened framework around the CCI and related financial, digital, and green initiatives aims to accelerate regional connectivity, expand trade corridors, and diversify cross-border collaboration. The controversy to watch will be how the evolving policy landscape in both countries—balancing open economic engagement with national interests and regulatory controls—shapes the pace and scope of these initiatives. Will these ambitious programs deliver the promised gains in jobs, investment, and innovation without unintended frictions, especially amid a shifting global economy?
Source: CNA/xy(kl)
