US-China ties in ‘a more challenging place’, but remains to be seen where tensions are headed under Trump: PM Wong

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SINGAPORE: The relationship between the United States and China is in “a more challenging place”, although it remains to be seen where tensions between the superpowers may be headed following Republican Donald Trump’s election victory, said Prime Minister Lawrence Wong on Friday (Nov 8).

Mr Trump, who scored a resounding victory this week to make his return to the White House, has threatened to raise tariffs to 60 per cent for goods imported into the US from China. This is much higher than the levies of 7.5 to 25 per cent he had imposed in his first term.

“Where China is concerned, I think it remains to be seen because we’ve heard what Mr Trump hopes to do in his campaign but what he actually does, we will have to see, including what happens with the key members of his administration and the key members of his Cabinet,” said Mr Wong at a press conference with the local media.

“But I would say taking a step back (and) setting aside the issue of who is in power, the broad dynamics in the US-China relationship is one where we are very concerned about.”

For one thing, while the US remains a pre-eminent power across many dimensions, it has seen China on the rise and it will have to decide whether to “treat this as an existential threat and therefore to contain China, or to embrace China and accept China as a major power in its own right”.

Likewise, China also has decisions to make. Given its rising power and heft in the global economy, it has to consider what responsibilities it will undertake to uphold the international order.

These are “consequential decisions” that the two major powers will have to make with consequences on the future global order, said Mr Wong.

“We hope leaders on both sides will make the wise choices to engage one another, to find a way to coexist with one another (and) have a framework where they compete but at the same time cooperate on issues of shared concerns,” he said.

“Where possible, Singapore will do our part to facilitate such a relationship.”

When asked if there are worries about the possibility of further tariffs being imposed around the world, Mr Wong noted that, beyond the US, Europe and other countries have also been imposing tariffs for fear of Chinese products – notably electric cars – overwhelming their markets.

Given Singapore’s status as an open economy and with trade being three times its gross domestic product, it is naturally concerned about “a world where there are more and more frictions to trade”, said the prime minister.

While there may be “a limited role” for tariffs, they “ought to be ideally applied within a proper framework”, he said, adding that a better way to resolve trade disputes is to revamp and strengthen the World Trade Organization (WTO).

Singapore will remain an advocate for stronger multilateral institutions – the United Nations, International Monetary Fund, World Bank, World Health Organization and WTO included – even amid a weakening in multilateralism, he said.

“We think it’s important to keep these institution(s) strong, to update them where necessary, because many of these were set up decades ago, and they will need to be strengthened and updated in terms of their objectives and functions,” he said.

“We play a constructive role whenever we can in moving in that direction, and I believe there will be like-minded countries who also share those perspectives and we will work together towards these shared outcomes.”

ELECTIONS ARE IMPORTANT

In response to a question from CNA on what Singapore can learn from the conduct and outcome of the recent US presidential election, Mr Wong emphasised that elections held in every country are different.

“It’s not for me to comment on how other countries conduct their elections, or what they do in their campaigns. We have our own elections. We have our own circumstances and context,” he said.

“I think whether it’s the US or any country in the world, I will come back to the simple point that elections are important, and elections are ultimately the people’s opportunity to decide which party forms the government.”

Mr Wong reiterated a point he made in an interview before taking office, that he does not take the mandate from Singaporeans for granted.

“I do not assume that I will continue as prime minister or that the PAP (People’s Action Party) will automatically form the next government,” he said.

When the next general election arrives, the PAP will present to the people its track record and what it has done in this term of government, said Mr Wong.

“We hope that will be sufficient to earn confidence and trust from Singaporeans, and we hope they will give us the chance to govern Singapore,” he said.

He said the government is concerned, because of the recent American elections and contests elsewhere, about election outcomes where “society becomes more divided, more polarised, and then there is no winner”.

“Yes, the election may produce a winner. But in the end, everyone is worse off because it makes it harder to govern, and it makes it harder for countries to move forward,” said Mr Wong.

He said the government has safeguards in place to address this, having put in place measures to counter falsehoods, deepfakes and misinformation while explaining its considerations to Singaporeans.

“We hope at the end of the day that Singaporeans themselves will do their part, because at the end of the day, Singaporeans hopefully will understand what’s at stake is choosing the right party to govern,” said Mr Wong.

This is important for Singapore as it charts its way through a world that is “becoming more dangerous, more turbulent, more volatile, more difficult for small countries like us”, he added.

Ultimately, elections will come and go, but everyone, including the government, the people and all political parties, should ensure that society does not end up divided after that, said Mr Wong.

“We try our best not to go down the path of political populism and opportunism, but find ways to keep our society strong, united, and maintain a high level of trust, because that’s essential for Singapore to stay relevant and to survive in this new world,” he said.

This is the second press conference Mr Wong has held to engage with local media since he took office in May.

At that time, he had pledged to hold more press conferences so that the government could better communicate its “thinking and considerations” to the public.

He said then that “when there are some new developments” or when there is “new thinking”, it would be useful for himself or relevant ministers to meet with the media in press conferences.

In August this year, Mr Wong on his 100th day in office met with the media to elaborate on topics and policies he spoke about at the recently held National Day Rally.

During the session at the National Press Centre, he touched on the core principles and values underpinning the country’s policies, cost-of-living concerns and the importance of creating a family-friendly environment, among other issues.