Lee Hsien Loong Warns Against Underestimating China at Business Forum

At the FutureChina Global Forum held on October 18, 2024, in Singapore, Senior Minister Lee Hsien Loong emphasized the importance of not underestimating China, despite the nation’s current economic challenges. According to Lee, both the United States and China face the danger of underestimating each other, which could lead to complications in their bilateral relations.

Lee’s remarks came during a fireside chat at the annual event, which gathers business leaders, academics, and industry watchers to explore developments in the Chinese economy. The forum was organized by Business China, a non-profit organization aimed at fostering connections between Singapore and China.

“It is very unwise to write off China,” Lee stated. “This perception works in both directions. Westerners believe they can keep China down, but that assumption is incorrect.” He noted that when he visits China, he cautions leaders about underestimating the United States, highlighting its strengths despite facing numerous challenges.

Lee also addressed queries regarding the potential impacts of the U.S. presidential candidates on U.S.-China relations. He emphasized that the tensions are driven by the United States’ perception of China as a long-term challenge rather than individual personalities. According to him, a Kamala Harris victory might lead to more predictable U.S.-China relations, whereas a Donald Trump win could introduce more unpredictability.

Moderator Lee Huay Leng, editor-in-chief of Chinese Media Group SPH Media, raised the issue of the Chinese perceiving a misunderstanding by the West. Lee acknowledged that both China and the world have not fully adjusted to China’s rapid growth since its economic reforms began in 1978. As China’s exports advance and capture more of the global market, adjustments in trade and industrial policies are necessary, he reasoned, particularly regarding China’s use of subsidies.

China’s recent initiative to gradually raise retirement ages was also discussed. Lee noted that extending working years could help address the issue of a shrinking labor force, alongside enhancing productivity.

The forum also featured contributions from Deputy Prime Minister Heng Swee Keat and American investor Ray Dalio. Discussions spanned from regional economic cooperation to shifts in consumer trends, with Dalio querying the future focus of China’s economic policies.