Better Outcomes For US, China Through Engagement: Wong

Trying to contain China’s rise would be ineffective and destabilising for all, he says

- Sue-Ann Tan

America and China will generate better outcomes for the world by continuing engagement and finding ways to work together on issues that affect everyone, said Finance Minister Lawrence Wong.

This will be better than trying to contain China’s rise, which will be difficult, ineffective and ultimately destabilising for all, including the United States, he said at a dialogue at the Peterson Institute for International Economics in Washington yesterday that was chaired by the think-tank’s president Adam Posen.

Dr Posen asked how a small, democratic, free market economy like Singapore plans to cope in a world where the US and China are set to diverge in a lasting way.

Mr Wong replied: “It is indeed worrying that there is a loss of mutual trust and confidence on both sides. Relations have become more strained after the (Ukraine) war.”

However, the minister added: “We see that there has been contact between the leaders, including at the highest levels. We hope that will help to ensure that rational and sensible calculations are made and keep the relations whole, so that you don’t end up in a situation where there is complete divergence or even outright confrontation, which will have a disastrous impact for the whole world.”

Part of the issue is how America chooses to respond to China’s rise, Mr Wong said. He noted that some years ago, there was a view that bringing China into the system as a stakeholder would ensure that it has a vested interest in the status quo. But that view has now changed, he added.