Singapore’s Senior Minister Lee Hsien Loong expressed confidence in China’s long-term growth and its capacity to contribute constructively to the global stage.
He cautioned against dismissing the world’s second-largest economy, calling it “short-sighted” and “unwise.” Mr Lee made the remarks during his keynote address in Suzhou on 25 November 2024, as part of his six-day official visit to China.
His speech marked the 30th anniversary of the China-Singapore Suzhou Industrial Park (SIP), a flagship bilateral initiative. Reflecting on China’s growth trajectory, Mr Lee highlighted the nation’s challenges, including a protracted property crisis, flagging domestic consumption, and geopolitical tensions with the United States.
“Economic development is still of high importance [to China], but it is no longer the pre-eminent national priority. Policy trade-offs will imply less exuberant growth,” he observed. Nonetheless, he emphasised China’s capacity for long-term planning, its technological advancements, and the determination of its people as key factors supporting its continued rise.
“China’s development is an enterprise that will take 100 years,” Mr Lee said, acknowledging its “considerable capacity” for growth driven by urbanisation and untapped workforce potential.
Strengthening bilateral ties through Suzhou Industrial Park
While in Suzhou, Mr Lee participated in events celebrating the SIP’s anniversary, including the signing of agreements on a 10-year cooperation blueprint and digital trade collaboration.
He also met Chinese Vice Premier He Lifeng, reaffirming their commitment to advancing the park into a world-class industrial zone with a focus on high-quality development.
Senior Minister Lee Hsien Loong meets with Vice Premier He Lifeng (MDDI Photo by Terence Tan)
The SIP, spanning 278 sq km and home to 1.13 million residents, has grown into a key industrial and urban development project. Its 2023 regional GDP reached 368.6 billion yuan (S$68.6 billion), contributing about 15 per cent to Suzhou city’s overall GDP.
Both leaders stressed the importance of adapting the SIP’s development to emerging sectors such as green technology, digital economy, and biomedical sciences. Vice Premier He called for increased efforts to attract high-quality investments and enhance innovation in industrial development.
“We should take the 30th anniversary of the park as a new starting point,” Mr He remarked during a ceremony by Jinji Lake, where both leaders planted trees to commemorate the occasion.
Senior Minister Lee Hsien Loong, together with Minister Chan Chun Sing, Vice Premier He Lifeng, and Jiangsu Party Secretary Xin Changxing, planting a persimmon tree on the right bank of Jinji Lake in Suzhou to commemorate the 30th anniversary of the Suzhou Industrial Park. (MDDI Photo by Terence Tan)
A testament to shared political will
Reflecting on the SIP’s origins, Mr Lee noted that the project symbolised the shared political will of both governments. Initially structured with Singapore holding a 65 per cent stake, the SIP faced losses due to competition from a rival hub. Reassurances from Chinese leaders, including then-President Jiang Zemin, led to a restructuring in 2001, giving China a 65 per cent stake.
“After the first few years, the Chinese side increasingly took the lead, eventually becoming the senior partner. They carried the project forward with energy and imagination,” Mr Lee said.
Today, the SIP is a demonstration of China’s ability to maintain high standards of economic and urban management while showcasing its openness to international collaboration, Mr Lee added.
MDDI Photo by Terence Tan
Challenges ahead for China
Despite China’s slower growth, Mr Lee pointed to its strengths in sectors such as electric vehicles, batteries, and solar panels, where Chinese companies are now market leaders. However, he acknowledged external pressures, such as geopolitical tensions and their impact on cross-border trade and investments.
“China has shown that it can take a strategic perspective to maintain consistent policies and direction over the long term, riding through transient ups and downs,” Mr Lee said. He emphasised the importance of global partnerships and a stable international order in which all nations can co-exist peacefully.
A beacon of cooperation
As Singapore and China deepen their partnership through projects like the SIP, Mr Lee affirmed Singapore’s commitment to collaboration. The SIP’s next decade of development aims to stay relevant in a fast-changing world by fostering innovation, sustainability, and international investment.
“In an era of uncertainty and anxiety, [the SIP] will be a beacon of cooperation and hope,” Mr Lee concluded.
