Speech by MOS Alvin Tan at the EAI-ISAS Public Session on “China and India: Fostering Growth, Investment and Trade Amid Global Uncertainty”

Mrs Rosa Daniel, Management Board Member of the ISAS, Dean Culture Academy at MCCY

Professor Alfred Schipke, Director of the East Asian Institute, NUS

Associate Professor Iqbal Singh Sevea, Director of the Institute of South Asian Studies, NUS

Distinguished guests

Excellencies

Ladies and Gentlemen

Introduction

1. Honoured to address you at the third edition of the EAI-ISAS workshop series, “China and India: Fostering Growth, Investment and Trade Amid Global Uncertainty”. I thought that I would try my best to answer three questions – 1) why are China and India important, 2) why their relationship is complicated, and 3) where does ASEAN and Singapore play a part in this? As Alfred and Rosa mentioned, it is a very timely conversation that we are having about China and India, and we are thinking about how, or even if, we can continue to prosper amidst global turbulence. Taking a step back, China and India are civilisations, in fact, if you watched Prime Minister Lawrence Wong’s interview – he talked about civilisational relationships, so these are civilisations whose histories stretch back across centuries, but it is not just their histories, but it is their futures which will shape the trajectory of our economic landscape and future.

Why are China and India important?

2. Much has been said about the dragon and elephant. The dragon, in Chinese tradition, is a symbol of strength, vitality and wisdom. The elephant, in Indian culture, represents prosperity, resilience and good fortune. China and India share a long history rich with economic and cultural exchanges. Trade and ideas flowed between these influential civilisations and far beyond their borders. From these two rich and longstanding civilisations, we have the gift of paper, printing, and the concept of the number zero.

3. Today, China and India are global economic powers. As the second-largest and fourth-largest economies in the world respectively (measured in GDP), they are key drivers of regional and global trade. As two of the world’s fastest-growing economies, they are projected to account for half of global growth this year. They are also deeply embedded in global supply chains, and have significant growth potential in areas such as green technology, digitalisation, manufacturing, and services industries. China is a dominant global producer and processor of critical minerals, and India is a leading producer of active pharmaceutical ingredients. Both serve as voices for the Global South as part of increasingly influential platforms such as BRICS, which represents over 40% of the global population. Both are also part of the Shanghai Cooperation Organisation (SCO), with the SCO Summit seeing its biggest turnout yet this year.

China and India – A Complicated Relationship

4. But China and India’s relationship remains complicated. They have been navigating their differences, such as border issues which have affected cross-border flows of people, trade, and investments. Coupled with wider global trade tensions, this has of course raised concerns regarding critical supply chains. China remains the largest source of India’s imports, while both economies have faced risk of disruptions and higher costs.

5. Yet even amidst these challenges, both sides have shown they recognise the importance of dialogue and the compass still points ultimately towards cooperation.

6. Over the past year, China and India have demonstrated renewed commitment to such communication and cooperation. They have taken a significant step towards mitigating differences last October with an agreement on patrolling arrangements along the Line of Actual Control in Ladakh. Last month, China’s Foreign Minister Wang Yi and India’s National Security Advisor Ajit Doval also agreed to set up mechanisms or working groups on border issues under the Working Mechanism for Consultation and Coordination on India-China Border Affairs. Flights between both countries also look set to resume after five years.

7. High-level meetings have reinforced this positive momentum. President Xi Jinping and Prime Minister Narendra Modi met on the sidelines of the BRICS last year, and again at the SCO Summit just last week. Both leaders signalled a readiness to move toward practical cooperation – to focus on development, and to expand trade and investment.

8. These are important strides. Because when China and India engage, our region benefits. Alongside ASEAN, China and India are drivers of Asia’s growth, which brings me to my third point, which is what is the role of ASEAN and Singapore in this critical relationship. As many of you know, ASEAN is a platform where both giants already interact, but they can connect and they can speak more openly with this wider region. ASEAN offers a thriving market, stability and opportunity for trade and cooperation. As ASEAN’s largest trading partner, China and ASEAN have deeply integrated supply chains. China is also one of ASEAN’s top investors in infrastructure projects such as railways, ports and industrial parks. In 2022, ASEAN upgraded ties with India to a Comprehensive Strategic Partnership (CSP). India also has the opportunity to integrate its supply chains with ASEAN for key sectors like semiconductors or green energy. Both parties are also working on initiatives that will further strengthen the ASEAN-India relationship via digital and green economic initiatives.

China, India, and Singapore

9. Singapore similarly recognises the importance of building a strong foundation of trust required for enduring partnerships. We do so in two ways – we go the distance, and we go together.

   1. First, we take a long-term approach and are not fair-weather friends.

      1. Mr Lee Kuan Yew made his first visit to China back in 1976, when China was just starting on the reform and opening up of its economy and still facing significant challenges. Mr Lee continued to make 33 visits to China over the next 37 years and subsequent leaders have also continued engaging China and fostering mutual trust. The trust between our countries have led to tangible outcomes. Since 2013, China has been our top merchandise trading partner while Singapore has been China’s largest foreign investor in terms of investment flows. This is underpinned by the China-Singapore Free Trade Agreement (CSFTA), which is the first comprehensive bilateral FTA between China and an Asian country. Today, bilateral cooperation has expanded beyond economics to areas such as health, culture, and education. We continue to engage China’s leadership on wide-ranging areas of cooperation through our annual Joint Council for Bilateral Cooperation (JCBC), an apex DPM-level platform, which celebrated its 20^th anniversary in 2024. Just last week, DPM Gan Kim Yong visited China, the first in his current capacity, where he attended commemorative events marking the 80^th anniversary of the end of World War II, and met several Chinese leaders.

      2. With India, our ties have also been long-standing and multifaceted. Mr Lee Kuan Yew visited India in 1964, a year before Singapore gained independence and met with then-Prime Minister of India Jawaharlal Nehru, and then in 1966, a year after our independence, met with Prime Minister Indira Gandhi. Subsequent leaders too have met with Indian leaders over the decades. We were the first to sign an FTA with India back in 2005, which created the conditions for greater trade and investments over the past two decades. In 2022, we started the India-Singapore Ministerial Roundtable (ISMR), with the 3^rd iteration held last month in New Delhi. To strengthen our B2B partnerships, we also started the India-Singapore Business Roundtable, held in parallel with the ISMR. Our commercial partnerships also go back two decades. PSA has been operating in India since 1998. Its combined investment of US$1.2 billion in the Navi Mumbai port makes it one of PSA’s largest investments in India to date. As time goes on, our leaders continue to foster strong ties with India.

   2. Second, we ensure win-win cooperation.

      1. With China, our governments have worked on projects which are tailored to China’s development needs. I will raise three examples which many of you are familiar with. Suzhou Industrial Park was developed when China needed to attract foreign investment. Tianjin Eco-City was a blueprint for sustainable urban development when China was trying to balance rapid urbanisation with environmental challenges. The Chongqing Connectivity Initiative helped open up Western China by linking it up with Southeast Asia and the rest of the world. We have also been exploring more opportunities in areas relating to green and digital cooperation.

      2. With India, we are supporting the development of India’s semiconductor ecosystem, cooperating on sustainable industrial parks, and collaborating on projects to provide India’s young and large workforce with the skills they need to support India’s new and growing sectors. India’s growing strengths as a manufacturing hub for electronics, electric vehicles, auto components and green energy have opened new pathways for us to strengthen our G2G partnership as well as provide opportunities for our businesses to contribute to India’s fast growing economy.

10. This year, we mark key milestones in our diplomatic relations with China and India.

    1. We celebrate 35 years of diplomatic relations with China. In June, PM Wong met President Xi Jinping, where both sides affirmed our commitment to deepen bilateral ties under the framework of “All-Round High-Quality Future-Oriented Partnership” (全方位高质量的前瞻性伙伴关系).

    2. And we commemorate 60 years of diplomatic relations with India, and 20 years of the Comprehensive Economic Cooperation Agreement (CECA). Last year, PM Wong and PM Modi agreed to elevate our bilateral relationship to a Comprehensive Strategic Partnership (CSP). Just last week, PM Wong launched the CSP Roadmap with PM Modi during PM Wong’s official visit to India. Singapore only has CSPs with 3 other countries. This means that our engagements with India are vital as they are wide-ranging – from defence to economics, technology to people-to-people relations. And the CSP Roadmap will chart the direction for the next phase of Singapore-India relations.

These are not just anniversaries. These are equivalent to milestones and markers along the road – reminding us of how far we have come, and where we want to go together.

Conclusion

11. The story of Asia has always been one of connection. Caravans along the Silk Road carried not just goods, but also ideas. Maritime traders brought spices and textiles, but also languages, philosophies, and friendships. Singapore itself was born at this crossroads.

12. Singapore has long been intertwined with China and India. We are a trading hub, facilitating centuries-old trade and cultural ties in the region, and we continue our legacy of trade and connectivity even today. Our people embody this living connection – Singapore’s Chinese and Indian communities, along with others, built our nation together and shaped our culture, from the food we eat to the festivals we celebrate. We continue to stand as a platform for the exchange of cultures for people, and of course, for ideas, investment and innovation.

13. It is therefore important that we can continue to have dialogues like these to deepen our understanding of both countries. I am confident that the experts present would enlighten us on China and India’s role in today’s evolving world, as well as the impact of their relationship on Singapore and ASEAN.

14. Thank you, and I wish you fruitful discussions ahead.