Parliament: As Sino-US rivalry intensifies, S'pore has to find ways to deepen cooperation with both sides, says Vivian Balakrishnan

SINGAPORE - Even as major power competition intensifies between the United States and China, Singapore has to avoid choosing sides and instead find ways to deepen and enhance cooperation with both parties.

Foreign Minister Vivian Balakrishnan said this on Monday (March 2) as he sketched out Singapore's foreign policy towards the world's two foremost powers during the debate on his ministry's budget.

"We must find ways to deepen and enhance our cooperation with both China and the US, including in new areas of mutual interest, and encourage all parties to act in accordance with international law," he said.

While Singapore might find itself "squeezed in the middle", Dr Balakrishnan stressed that the country wants to be friends with both powers - and not be caught in the crossfire or seen as taking one side or the other.

"Both the US and China must know that although we want to have good relations with both, we do not do things at their behest," he said. "Ultimately, we act in a principled way and we will only do what is in the best long-term interests of Singapore citizens."

Mr Vikram Nair (Sembawang GRC) had asked how the Government would balance relations with both sides, given their intensifying rivalry.

Dr Balakrishnan said the key variable in this equation was the bilateral relationship between the US and China.

Both countries are locked in a bruising trade war, and although a phase one trade deal was inked in January, thornier issues relating to structural changes to China's economy have not been dealt with, and left for later.

Both sides have to make "strategic choices" moving forward, said the minister.

On its part, the US has to decide how it wants to deal with China, he added.

"It can work with China in the global order, get China to participate within a rules-based system, and compete with China on a fair basis, or the US can strive to remain the dominant power in all arenas, in all areas, at all costs and seek to arrange international rules so as to limit China's power and influence," he said.

China, on the other hand, has to decide whether it wants to be a "benign superpower, welcome and respected by other countries", as it seeks to increase its influence.

"If so, China must be willing to make adjustments to participate within the international rules-based system and give space to others, especially other small countries" he said, adding that not doing so will seed resentment and pushback.

MPs such as Mr Baey Yam Keng (Tampines GRC), Ms Sun Xueling (Pasir Ris-Punggol GRC) and Ms Tin Pei Ling (MacPherson) asked how Singapore would deepen relations with either side.

During his 36 minute-long speech, Dr Balakrishnan noted that the US has helped build a rules-based global order that has been a formula for peace and prosperity.

Singapore has been a "clear beneficiary" like many other emerging economies, and continues to believe in upholding such a rules-based system, even though it recognises that "some of the rules" need to be updated, he said.

The US continues to maintain its ties with the region and is the largest investor in Singapore, he said, noting that both countries had renewed a key defence pact last year.

Prime Minister Lee Hsien Loong was scheduled to attend an Asean-US summit in Las Vegas next week, before it was cancelled because of the ongoing coronavirus outbreak.

"We look forward to resuming the interactions at a high-level when the situation improves," he said.

As for China, both Dr Balakrishnan and Minister of State for Foreign Affairs Sam Tan pointed out that Singapore has been China's largest foreign investor since 2013.

This year also marks the 30th year since Singapore and China established diplomatic relations, said Mr Tan.

The deep relations between both sides are being kept up even as Singapore's 4G leadership takes over the reins - Deputy Prime Minister Heng Swee Keat and younger ministers who helm the government-to-government projects and other bilateral platforms "are regularly meeting their Chinese counterparts", he said.

"I'm confident that our fourth generation leaders are continuing to strengthen our friendship and trust between our two countries," Mr Tan added.

On how Singapore would deepen engagement with countries outside Singapore's immediate neighbourhood, Mr Tan said the Republic was deepening ties with Japan, South Korea, India, Australia and the European Union.

With Brexit imminent, Mr Tan also said Singapore's bilateral arrangements with the United Kingdom will remain in force.

Both sides are working "to ensure continuity" by porting over provisions under the EU-Singapore Free Trade Agreement through a separate deal, he added.