The United States and China must find common ground on global issues, competing as well as cooperating where possible, said Deputy Prime Minister Heng Swee Keat yesterday.
Asean countries should also stand together in the face of pressure from great power competition, in order to advance the region's collective interests.
"It is not a question of choosing sides, but rather, retaining our ability to make choices for ourselves," Mr Heng said at The Straits Times Global Outlook Forum.
He was the keynote speaker at the annual event organised by The Straits Times, in partnership with presenting sponsor OCBC Premier Banking, and held online.
Mr Heng also touched on Singapore's place in the world, saying that its openness underpins its economic success and the country will lose its relevance if it closes up.
He said the world must be prepared for sharper competition between the US and China.
Some in the US and elsewhere regard China as a strategic competitor, he noted, and there is now bipartisan support within the US for taking a tougher stance on it. The incoming administration of President-elect Joe Biden may not reverse some of the moves the outgoing one has put in place, he said.
Yet, while strategic rivalry will colour the relationship for a long time to come, both the US and China can still reach a more measured tone of engagement and greater predictability in decision making, he added.
Conflict is not inevitable, he said, noting that competition and cooperation can co-exist. Even during the Cold War, the US and the Soviet Union worked together on several issues, including eradicating smallpox, he pointed out.
"The key is that both sides must take a rational view and find common ground, to compete when necessary and cooperate wherever possible," he said, adding it would suit both countries to stay engaged.
The current global order did not come about naturally, he noted, saying it was created through strong leadership and purposeful decisions. For the US and China, Mr Heng said: "It is in the interest of both to remain engaged with each other and with the global system.
"There are challenges that the US will not be able to manage alone. China has been a major beneficiary of the global system since it undertook reforms and its entry into the World Trade Organisation two decades ago."
There are early signs that both could be willing to seek common ground on global issues such as climate change and public health, Mr Heng added.
On Asia, he noted the continent's share of global gross domestic product has been growing steadily, and it is projected to recover faster than the rest of the world, and will contribute 60 per cent of global growth by 2030.
But an "Asian century" is not inevitable and economic recovery will be uneven across countries, with US-China competition possibly impacting growth. "To secure the region's potential and address risks, leaders need to work together to take action," he said.
In Asean, the active presence of both the US and China is important for the region to progress, Mr Heng added. The American presence underpins regional stability, while China is the largest trading partner for eight Asean countries.
But the region will feel the tug of US-China competition. "We cannot determine the trajectory of this contest, but we can stand together to advance Asean's collective interests. Asean's interests must be defined by Asean, not by others."
The grouping must retain its central role in the region, to safeguard its independence and agency, he added. "Asean must play a proactive and central role in engaging external partners, always working inclusively and pragmatically, and transcending disagreements between external powers," he said.
