‘More relevant than ever’: Suzhou Industrial Park signals China's global links amid troubled geopolitics, says Singapore
Suzhou Industrial Park, the first government-to-government project between Singapore and China established in 1994 in Jiangsu province's Suzhou city, is marking its 30th anniversary this year.
by Bong Xin Ying · CNA · JoinSINGAPORE: Thirty years since its inception, the China-Singapore Suzhou Industrial Park is more relevant than ever before in signalling China’s connection with the world amid a troubled geopolitical landscape, according to Mr Chan Chun Sing, the minister in charge of the project.
The project also simultaneously demonstrates how the world can build confidence in China, as Mr Chan, also Singapore’s education minister, pointed out in an interview with the media on Sep 26.
“We hope to see in Suzhou (Industrial Park) many ideas, industries, governance models, even how people live, that can be a role model for many parts of the world,” he said.
“And if we can do that, even in a fragmenting world, in a world where there are contesting blocs, this is, I think, a chance for China to demonstrate its contributions to the broader world.”
Mr Chan also touched on the future of Singapore-China cooperation, sharing that bilateral projects in another country are being explored as a possible next frontier. At the same time, he pointed out that collaborations can and should continue to go beyond inter-government tie-ups.
“There will always be opportunities for Singapore and China to work together ... precisely because we are quite different, both in terms of size, geography, resource base, history and so forth,” he said.
“Because we are different, but yet we share some common perspectives and shared objectives, we can draw on each other's strengths.”
A “BEACON” FOR THE WORLD
Established in 1994 in the city of Suzhou in China’s Jiangsu province, Suzhou Industrial Park is the first government-to-government project between Singapore and China. It has been a platform for Singapore to share its industrialisation experience and governance model with China.
Spanning 278 sq km, the park has evolved into a modern integrated township, home to 1.13 million residents and housing a China-Singapore cooperation area.
Suzhou Industrial Park is one of China’s top industrial zones. It recorded a regional gross domestic product (GDP) of 368.6 billion yuan (US$51.4 billion) in 2023, a 5.9 per cent growth year-on-year. That figure was about 15 per cent of Suzhou city's GDP that year.
Sectors in focus at the park have changed together with the times. Mr Chan shared that more attention is currently being paid to sectors such as clean energy, biomedical sciences and digital innovation.
For instance, Singapore’s Eagle Renewable Energy has partnered with China-Singapore Green Development to explore opportunities in the renewable energy space in China, while Sembcorp and Zooming New Energy are looking at collaboration in the deployment of large-scale wind and solar power projects.
But Mr Chan stressed that Singapore has always viewed the bilateral project as more than an industrial park.
“It is a symbol of our commitment ... to work with China to develop something that allows China to connect with the world, for the world to build confidence with China. So that is fundamental,” he said in response to questions from reporters.
Mr Chan assumed the role of minister-in-charge of the Suzhou Industrial Park on Sep 9. The project is typically overseen at the ministerial level by the trade and industry minister, said the Ministry of Trade and Industry (MTI).
The move was made following Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong's appointment as co-chair of the Joint Council for Bilateral Cooperation (JCBC) and related joint steering council meetings for the Singapore-China government-to-government projects, MTI explained. The JCBC is the highest-level annual forum between China and Singapore.
Mr Chan described the bilateral project as a “beacon” of how China can connect with the world, suggesting that this point is particularly pertinent in the current geopolitical climate.
Tensions between China and the United States have been escalating as both sides remain at odds on issues like trade, Taiwan, as well as the Russia-Ukraine war.
The tussle has also increasingly involved the wider West, with the European Union just recently voting to impose tariffs as high as 45 per cent on electric vehicles from China after finding that Beijing unfairly subsidised its industry.
China has repeatedly denied the claim. It has in turn threatened tariffs on a raft of European products, potentially shifting a trade dispute into higher gear.
“To a large extent, China is now much more integrated with the world. The world understands China better. But every now and then, including the current moment, there will always be people who will continue to lack confidence in China's future. There will be people who will perhaps need to know more about China,” said Mr Chan.
“So in that sense, the role of Suzhou (Industrial Park) as a beacon for China's connection with the world continues to remain relevant, and if anything, at this point in time, in this current moment, it is more relevant than ever before.”
EXPLORING FURTHER LINES OF COOPERATION
At the same time, Mr Chan elaborated on the factors underpinning the development of Suzhou Industrial Park, and what potentially lies ahead in wider collaboration between Singapore and China.
He singled out a deep sense of trust as a key driver, noting that this was required for China to open up and try new ideas within its borders with a foreign partner. Mr Chan added that this trust must “permeate at all levels”, and be continuously honed.
A deep understanding of each other’s needs and aspirations is another driving factor, said the minister.
“It's not about what we want to do, what they want to do, it’s what we can find common ground to do together,” said Mr Chan.
“There's no point for us to propose any project ... unless both sides see mutual benefits and both sides can draw on each other's respective strengths.”
Suzhou Industrial Park started with Singapore holding a majority 65 per cent stake and China holding the remainder. It suffered losses in the initial years amid stiff competition from a nearby rival business hub - Suzhou New District - that was backed by the local government.
In December 1997, Singapore’s then-senior minister Lee Kuan Yew travelled to China. When in Suzhou, he openly criticised local officials over the matter. Later in Beijing, Mr Lee received reassurances from then-Chinese president Jiang Zemin, who reaffirmed his country’s commitment to Suzhou Industrial Park.
This led to negotiations and an eventual change in ownership structure that took effect in 2001, reducing Singapore’s stake to 35 per cent while upping China’s to 65 per cent.
Mr Chan said in the media interview that what percentage share Singapore has is "not the most critical thing".
“The spirit of being able to pilot and test up new things, whether from the early days of Suzhou (Industrial Park) until today ... are examples of how we can continue to value-add to the relationship, and both sides can continue to pioneer and learn from this."
Then-Singapore Deputy Prime Minister Lawrence Wong expressed his confidence in the park’s future earlier this year. He became Singapore’s fourth prime minister in May.
"I am confident that the SIP (Suzhou Industrial Park) will continue to be a platform for both sides to pioneer new initiatives that strengthen Singapore-China ties,” he wrote in a Facebook post in February after meeting with Suzhou Party Secretary Liu Xiaotao in Singapore.
Other than Suzhou Industrial Park, Singapore and China currently have two other government-to-government projects - Tianjin Eco-City (launched in 2008) and the Chongqing Connectivity Initiative (launched in 2015).
On a possible fourth government-to-government project, Mr Chan said whether it happens or not is not the most important factor. He pointed out that tie-ups go beyond just a government-to-government model, citing the Guangzhou Knowledge City as an example.
Located around 35km from Guangzhou's city centre, the commercial development was developed in 2010 by a joint venture company between Singapore-based real estate group CapitaLand and Guangzhou Development District, to spur Guangdong's economic transformation.
Mr Chan also shared that Singapore and China are looking at collaborations in a third country as they explore how to take cooperation to the next level. He noted that as China has matured, more in the country are prepared to go abroad to internationalise their businesses.
“And that is a natural trajectory for any growing economy, and that is also another opportunity for us to work with China beyond being in China itself. So this is what we call a third country project,” Mr Chan said.
A NEW ERA OF OPPORTUNITIES
Singapore’s approach to bilateral relations with China also surfaced in the later part of the interview, when Mr Chan addressed specific questions from reporters.
“We never go into China on the basis of short-term benefits and gain. We go into China on the basis of building a long-term relationship ... to seek mutual long-term benefits,” Mr Chan emphasised when asked about Singapore’s stance on China’s economic potential given recent headwinds.
Singapore has been China’s largest foreign investor since 2013, while China has been Singapore’s top investment destination since 2007, representing 15.3 per cent of Singapore’s cumulative direct investment abroad as of 2021, according to MTI.
“We are neither bullish nor bearish. We are neither optimistic nor pessimistic ... we are realistic about China's potential and challenges,” Mr Chan added.
When asked what message he would have for young Singaporeans looking to work in China, be it in Suzhou Industrial Park or elsewhere, Mr Chan highlighted the importance of focusing on quality rather than quantity.
He noted that the challenge of attracting Singaporeans to work in China is “far easier” than 30 years ago, explaining it as a “natural trajectory” as more venture abroad to explore other markets, not just China’s.
Singapore’s collaboration with China has never been on the basis that the city-state has enough people to meet Chinese needs or demands, said Mr Chan.
He brought up the ongoing exchange programmes between Chinese and Singaporean officials as an example. Since the mid-1990s, more than 50,000 Chinese officials have come to Singapore for various study visits and training programmes, as stated on Singapore’s foreign affairs ministry website.
“If they continue to send their people here, it must be because they find value in the exchanges at the different levels, right?” said Mr Chan.
Even so, the minister cautioned against resting on one’s laurels, as what has been done in the past may not necessarily remain relevant.
“Going forward, we will have to constantly reinvent our value proposition to China, find new projects, new avenues to collaborate,” Mr Chan said.
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