Singapore-China Strategic Partnership - Maxthon

Executive Summary

This case study examines the deepening strategic partnership between Singapore and China, highlighted by the December 15, 2025, Joint Council for Bilateral Cooperation (JCBC) meeting in Chongqing, where 27 new bilateral agreements were announced. The analysis explores the current state of relations, future outlook, and strategic solutions for navigating geopolitical uncertainties.

Record 27 deals announced between Singapore and China at the Joint Council for Bilateral Cooperation (JCBC) meeting in Chongqing.
Trade growth of 8.8% between the two countries in the first 11 months of 2025
Major agreements, including DBS becoming Singapore’s second renminbi clearing bank and a pilot program for digital renminbi payments for Singapore travellers
CCI expansion – plans to broaden the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity into new areas like healthcare, education, and green finance
Investment surge – Singapore’s investments in Chongqing doubled from US$5.7 billion in 2015 to US$12.7 billion in 2024

1. CASE OVERVIEW

Background Context

Diplomatic Foundation:

35 years of diplomatic relations (1990-2025)
Built on early exchanges between Lee Kuan Yew and Deng Xiaoping
Three flagship government-to-government projects: Suzhou Industrial Park (SIP), Tianjin Eco-City (TEC), and Chongqing Connectivity Initiative (CCI)

Current State (2025):

Record 27 agreements signed at JCBC meeting in Chongqing
Trade growth: 8.8% increase in first 11 months of 2025
Air connectivity: Flight volumes exceed pre-COVID-19 levels
Singapore’s investments in Chongqing: US$12.7 billion (doubled since 2015)
Trade between Singapore and Chongqing: 15.5% growth in 2024

Key Stakeholders

Singapore Side:

Deputy Prime Minister Gan Kim Yong (JCBC Co-chair, Minister for Trade and Industry)
Ministry of Health, Ministry of Law, Ministry of Sustainability and Environment
DBS Bank (second renminbi clearing bank)
Singapore businesses and investors

China Side:

Vice-Premier Ding Xuexiang (JCBC Co-chair)
National Health Commission, General Administration of Customs
China Council for the Promotion of International Trade
ICBC and Bank of China Singapore branches

2. STRATEGIC CHALLENGES

Geopolitical Uncertainties

Rising global unilateralism affecting international trade
Regional tensions impacting Southeast Asian connectivity
Need to balance relationships amid great power competition
Supply chain vulnerabilities and economic fragmentation

Economic Headwinds

Global economic slowdown affecting trade volumes
Currency fluctuation risks for cross-border transactions
Need for economic diversification and resilience
Technology transfer and intellectual property concerns

Rapid Technological Changes

Digital economy transformation requirements
Cybersecurity and data governance challenges
Need for regulatory harmonization in fintech
Green technology and sustainability imperatives

3. OUTLOOK & OPPORTUNITIES

Near-Term Outlook (2025-2027)

Trade & Investment:

Continued growth trajectory with 8-10% annual trade increases expected
Expansion of Singapore’s investment footprint in western China
Enhanced supply chain integration through CCI-ILSTC corridor
Growth in processed food exports from Singapore to China

Financial Integration:

DBS as second renminbi clearing bank strengthens offshore yuan markets
Digital renminbi pilot program creates cashless payment infrastructure
Cross-border investment channels facilitate capital flows
Green finance cooperation supports sustainable development

People-to-People Connectivity:

Increased flight frequencies and travel convenience
Digital payment solutions for Singapore travelers in China
Educational and cultural exchange programs
Healthcare collaboration on aging populations

Long-Term Outlook (2027-2035)

CCI Next Decade Expansion:

Healthcare cooperation: communicable disease control, healthy aging, aged care
Education partnerships: skills development, research collaboration
Green finance: sustainable infrastructure, climate finance mechanisms
Digital trade: e-commerce facilitation, digital standards harmonization

Regional Connectivity Leadership:

New International Land-Sea Trade Corridor (ILSTC) as Belt and Road Initiative flagship
Singapore as ASEAN gateway for western China connectivity
Multimodal transport hub development (rail-sea integration)
Regional supply chain resilience enhancement

Innovation & Technology:

Joint research and development initiatives
Smart city collaboration (building on Tianjin Eco-City model)
Digital economy infrastructure development
Intellectual property protection frameworks

4. SOLUTIONS & STRATEGIC RESPONSES

Solution 1: Financial Ecosystem Deepening

Dual Clearing Bank Structure:

DBS and ICBC as complementary renminbi clearing banks
Reduces transaction costs for Singapore-China trade
Enhances liquidity in offshore yuan markets
Supports renminbi internationalization

Implementation Approach:

Leverage DBS’s 44 offshore bond issuances (57.3 billion yuan) as foundation
Expand clearing services to ASEAN regional partners
Develop yuan-denominated investment products
Create cross-border payment infrastructure

Expected Outcomes:

20-30% reduction in currency conversion costs
Increased use of renminbi in Singapore-China trade settlement
Enhanced financial services competitiveness

Solution 2: Digital Payment Integration

Digital Renminbi Pilot Program:

ICBC and Bank of China Singapore branches lead rollout
Phased implementation starting December 2025
Near-field communication (NFC) technology for offline payments
Wallet opening and top-up services for Singapore travelers

Strategic Benefits:

Seamless payment experience for 2+ million annual Singapore visitors to China
Reduced reliance on cash and credit cards
Data insights for consumer behavior and trade patterns
Foundation for future central bank digital currency (CBDC) collaboration

Scalability Path:

Expand to corporate payment use cases
Integrate with Singapore’s PayNow system
Enable merchant adoption in Singapore for Chinese tourists
Develop cross-border e-commerce payment solutions

Solution 3: Sectoral Cooperation Frameworks

Healthcare Collaboration MOU:

Prevention and control of communicable/non-communicable diseases
Healthy aging and aged care policy exchange
Women’s and children’s health programs
Medical technology and pharmaceutical research

Rationale: Both nations face similar demographic challenges with aging populations. Singapore’s healthcare system efficiency combined with China’s scale and research capabilities creates synergistic opportunities.

Legal Services Integration:

International commercial dispute resolution cooperation
Intellectual property management frameworks
Legal support for digital and green economy growth
International trade policy harmonization

Value Proposition: Strengthens rule-of-law frameworks for business confidence and reduces transaction costs in cross-border commerce.

Solution 4: Supply Chain Resilience

Processed Meat Export Protocol:

Smoothened customs procedures for Singapore manufacturers
Quality assurance and food safety standards alignment
Expanded market access for Singapore food companies
Diversified protein supply for Chinese consumers

CCI-ILSTC Corridor Enhancement:

15% cargo volume growth (2022-2024) demonstrates viability
Rail-sea multimodal integration reduces logistics costs
Qinzhou port as critical southern China gateway
Connects western China to Southeast Asian markets

Strategic Significance:

Reduces dependence on traditional maritime routes
Provides alternative supply chain pathways
Enhances economic security for both nations
Positions Singapore as ASEAN logistics hub

5. EXTENDED SOLUTIONS & INNOVATION PATHWAYS

Extended Solution 1: Green Economy Transition Partnership

Comprehensive Green Finance Framework:

Establish Singapore-China Green Investment Fund (target: US$5-10 billion)
Carbon credit trading mechanism between exchanges
Green bond issuance standards harmonization
Sustainable infrastructure project financing

Technology Collaboration:

Joint renewable energy research centers
Electric vehicle and battery technology development
Carbon capture and storage pilot projects in Chongqing
Smart grid and energy efficiency solutions

Implementation Timeline:

Phase 1 (2025-2027): Framework establishment, initial fund deployment
Phase 2 (2027-2030): Scale-up of green projects, technology transfer
Phase 3 (2030-2035): Regional expansion, ASEAN integration

Expected Impact:

US$20-30 billion in green investments over 10 years
30-40% reduction in carbon intensity for participating industries
Creation of 50,000+ green jobs across both countries
Establishment of best practices for regional green finance

Extended Solution 2: Digital Economy Ecosystem

E-Commerce Facilitation Platform:

Single window for cross-border digital trade
Mutual recognition of digital certificates and signatures
Data flow framework respecting both nations’ regulations
Consumer protection and dispute resolution mechanisms

Innovation Sandbox Approach:

Joint fintech regulatory sandbox in Singapore and Chongqing
Testing of blockchain-based trade finance solutions
AI and machine learning for customs and trade facilitation
Cybersecurity standards development

Intellectual Property Digitalization:

Online IP registration and protection platform
Fast-track patent examination cooperation
Technology licensing marketplace
IP dispute resolution through alternative mechanisms

Target Outcomes:

50% reduction in cross-border e-commerce transaction time
US$10 billion in digital trade growth by 2030
100+ fintech solutions tested and deployed
Comprehensive IP protection framework

Extended Solution 3: Advanced Manufacturing & Innovation Hubs

Industry 4.0 Collaboration Centers:

Establish joint advanced manufacturing facilities in Chongqing
Singapore expertise in precision engineering and automation
China’s scale in electronics and component manufacturing
Focus sectors: semiconductors, biotech, aerospace components

Research & Development Networks:

Joint university research programs (NUS, NTU with Chinese partners)
Industry-academic collaboration on emerging technologies
Talent exchange programs for scientists and engineers
Commercialization pathways for research outcomes

Startup Ecosystem Integration:

Singapore-China startup accelerator programs
Venture capital co-investment funds
Market access facilitation for promising startups
Regulatory sandbox for innovative business models

Investment Structure:

Government co-funding: US$2-3 billion over 5 years
Private sector matching: US$5-7 billion
Focus on dual-use technologies and commercial applications
Clear IP ownership and technology transfer frameworks

Extended Solution 4: Human Capital & Education Bridge

Talent Mobility Programs:

Mutual recognition of professional qualifications
Fast-track work visa processes for skilled professionals
Executive exchange programs between companies
Retirement and social security portability arrangements

Educational Partnerships:

Joint degree programs in priority sectors (tech, healthcare, sustainability)
Student exchange quotas and scholarship programs
Vocational training collaboration for middle-skill workers
Mandarin language and cultural immersion initiatives

Aging Population Solutions:

Elder care worker training and certification
Medical tourism and long-term care options
Retirement community development models
Healthcare technology for aging populations

Knowledge Transfer Mechanisms:

Best practice exchanges in urban planning and governance
Policy dialogue on innovation ecosystems
Public sector capacity building programs
Think tank collaboration on regional challenges

6. IMPACT ASSESSMENT

Economic Impact

Direct Economic Benefits:

Trade Growth: From 8.8% annual growth to sustained 10-12% with new agreements
Investment Flows: Singapore’s Chongqing investments projected to reach US$20 billion by 2030
Financial Services Revenue: US$500 million – US$1 billion annually from enhanced financial integration
Logistics Efficiency: 20-25% cost reduction through CCI-ILSTC corridor optimization

Multiplier Effects:

Job creation: 100,000+ direct and indirect jobs across both nations
SME opportunities: Enhanced market access for 10,000+ small and medium enterprises
Innovation commercialization: US$5-10 billion in new technology sectors
Regional spillover: US$15-20 billion in ASEAN trade facilitation

GDP Contributions:

Singapore: 0.5-0.8% additional GDP growth over 5 years
Chongqing: 1.0-1.5% additional regional GDP growth
Combined economic value creation: US$50-75 billion by 2035

Strategic Impact

Geopolitical Positioning:

Singapore’s Role: Strengthened position as China-ASEAN connector and trusted partner
Hedging Strategy: Maintains balanced relationships amid US-China tensions
Regional Leadership: Demonstrates model for pragmatic, mutually beneficial cooperation
Soft Power: Enhanced diplomatic influence through economic interdependence

Institutional Strengthening:

JCBC as model for high-level bilateral coordination mechanisms
Three-tier project structure (SIP, TEC, CCI) proves government-to-government model effectiveness
Replicable frameworks for other nations seeking China partnerships
Rules-based cooperation amid global governance challenges

Supply Chain Security:

Diversified trade routes reduce vulnerability to maritime disruptions
Alternative connectivity pathways enhance economic resilience
Food security improvements through processed meat exports
Critical supply chain mapping and risk mitigation

Social Impact

People-to-People Connections:

Enhanced travel convenience: 3-5 million annual visitor exchanges by 2030
Cultural understanding through education and exchange programs
Healthcare access: Cross-border medical services and knowledge sharing
Diaspora engagement: Stronger links for ethnic Chinese Singaporeans

Quality of Life Improvements:

Aging population solutions: Better elderly care and healthcare services
Consumer benefits: Digital payment convenience, wider product choices
Environmental gains: Green technology adoption, cleaner cities
Innovation access: Exposure to cutting-edge technologies and services

Workforce Development:

Skills upgrading in digital, green, and healthcare sectors
Professional mobility and career advancement opportunities
Knowledge transfer from leading industries
Entrepreneurship enablement through ecosystem integration

Regional Impact

ASEAN Integration Effects:

CCI-ILSTC as template for China-ASEAN connectivity
Singapore as gateway multiplies benefits across region
Standards harmonization facilitates broader regional trade
Demonstration effect encourages other bilateral partnerships

Belt and Road Initiative (BRI) Enhancement:

Southern corridor strengthening complements northern routes
Maritime Silk Road and land corridors integration
Quality infrastructure and governance standards
Sustainable development approach to BRI projects

Economic Architecture Shaping:

Influence on Regional Comprehensive Economic Partnership (RCEP) implementation
Models for digital economy rules in regional agreements
Green finance standards setting for Asian markets
Financial infrastructure supporting regional currency internationalization

Risk Mitigation Impact

Economic Resilience:

Reduced dependency on single markets or supply chains
Currency diversification through renminbi internationalization
Financial system stability through dual clearing mechanisms
Trade route alternatives enhance crisis preparedness

Technological Sovereignty:

Joint R&D reduces reliance on third-party technologies
IP protection frameworks secure innovation investments
Digital infrastructure cooperation enhances cyber resilience
Standards development ensures compatible systems

Social Stability:

Healthcare cooperation addresses demographic challenges
Education partnerships develop future-ready workforce
Food security protocols manage supply disruptions
Cultural exchange reduces misunderstandings and tensions

7. IMPLEMENTATION ROADMAP

Phase 1: Foundation (2025-2027)

Immediate Actions:

Operationalize all 27 agreements signed at JCBC
Launch digital renminbi pilot and expand to 100,000 users
Establish DBS renminbi clearing operations
Begin processed meat exports under new protocol

Institutional Setup:

Create working groups for five CCI expansion areas
Establish joint monitoring and evaluation mechanisms
Launch green investment fund with initial US$2 billion
Set up innovation sandboxes in Singapore and Chongqing

Early Wins:

Achieve 15% growth in CCI-ILSTC cargo volumes
Process 1,000+ digital renminbi transactions daily
Clear first commercial disputes under new legal framework
Complete first phase of healthcare professional exchanges

Phase 2: Expansion (2027-2030)

Scaling Initiatives:

Expand digital payment integration to corporate use cases
Deploy US$10 billion in green finance projects
Establish 5-10 joint innovation centers
Increase flight connectivity to 200+ weekly flights

Deepening Cooperation:

Launch joint degree programs in 10+ universities
Achieve mutual recognition of 20+ professional qualifications
Operationalize IP digitalization platform
Expand CCI model to additional Chinese provinces

Performance Targets:

US$15-20 billion in bilateral trade growth
50,000+ professionals participating in exchange programs
100+ startups accelerated through joint programs
25% of Singapore-China trade settled in renminbi

Phase 3: Maturation (2030-2035)

Institutionalization:

CCI becomes self-sustaining with minimal government intervention
Private sector drives 70%+ of cooperation initiatives
Regional expansion to include ASEAN-wide participation
Establish permanent secretariat for ongoing coordination

Innovation Leadership:

Co-develop global standards in digital trade and green finance
Export successful models to other bilateral relationships
Create regional innovation ecosystem connecting multiple countries
Position Singapore-China partnership as global best practice

Legacy Outcomes:

US$50+ billion in cumulative economic value creation
Comprehensive institutional framework for cooperation
Resilient and diversified economic relationship
Model for navigating great power relations pragmatically

8. CRITICAL SUCCESS FACTORS

Political Will and Trust

Sustained high-level political commitment across leadership transitions
Regular JCBC meetings and ministerial exchanges
Transparent communication and expectation management
Respect for each other’s core interests and sensitivities

Pragmatic Implementation

Focus on concrete, measurable outcomes rather than rhetoric
Business-driven cooperation with government facilitation
Flexibility to adapt to changing circumstances
Learn from three existing G2G projects (SIP, TEC, CCI)

Stakeholder Alignment

Coordinate between government agencies, businesses, and civil society
Ensure benefits are broadly distributed, not concentrated
Address concerns of displaced workers or affected communities
Maintain public support through clear communication

Risk Management

Monitor geopolitical developments and adjust strategies
Diversify cooperation to avoid over-concentration
Maintain other international partnerships (US, ASEAN, EU, India)
Develop contingency plans for various scenarios

Innovation and Adaptation

Embrace emerging technologies and business models
Regularly review and update cooperation frameworks
Encourage experimentation and learning from failures
Stay ahead of global trends in trade and investment

9. CONCLUSION

The Singapore-China strategic partnership, exemplified by the 27 agreements signed on December 15, 2025, represents a sophisticated approach to navigating complex geopolitical and economic challenges. The relationship has evolved from basic diplomatic ties to a comprehensive, multi-layered cooperation spanning trade, investment, finance, technology, healthcare, and people-to-people exchanges.

Key Strengths:

Proven track record through three successful G2G projects over 30+ years
Pragmatic, business-driven approach with government facilitation
Institutional frameworks (JCBC, CCI) that enable sustained cooperation
Complementary strengths (Singapore’s efficiency and connectivity, China’s scale and growth)
Mutual respect and understanding of each other’s interests

Strategic Value:

Provides economic opportunities amid global uncertainties
Offers alternative connectivity and supply chain pathways
Demonstrates viable model for small-large nation partnerships
Contributes to regional stability and prosperity
Advances both nations’ development goals

Future Trajectory: The relationship is poised for significant deepening over the next decade, with particular potential in green finance, digital economy, healthcare, and innovation. Success will depend on maintaining political will, ensuring pragmatic implementation, managing risks effectively, and continuing to generate tangible benefits for businesses and citizens.

For Singapore, this partnership is a crucial pillar of its external economic strategy, providing access to the world’s second-largest economy while maintaining its role as a trusted bridge between China and ASEAN. For China, Singapore offers a reliable partner for testing reforms, accessing ASEAN markets, and demonstrating successful international cooperation models.

As global uncertainties persist, the Singapore-China partnership stands as a testament to the enduring value of pragmatic, mutually beneficial cooperation grounded in respect, trust, and shared interests.