Strengthening Economic Relations Between China and Singapore: Trade, Investment, and Future Opportunities

Since 2013, Singapore has been China’s largest foreign investment source and trading partner. Both countries collaborate in the Belt and Road Initiative, with over 8,500 Chinese firms in Singapore. Their trade strengthened under the RCEP Agreement, growing by 4.4% in 2023.

Singapore has been China’s largest source of new foreign investment for 11 consecutive years since 2013. Likewise, China has remained Singapore’s largest trading partner, largest export market, and largest source of imports for 11 years in a row. Companies from both countries have jointly explored opportunities in the Belt and Road Initiative (BRI) markets, achieving positive outcomes in areas such as infrastructure, financial technology, legal services, and third-party market cooperation.

Currently, there are over 8,500 Chinese enterprises registered in Singapore, covering a wide range of industries, including trade, finance, shipping, infrastructure, logistics, and real estate. Singapore serves as a key hub on the Maritime Silk Road and plays an important role in the high-quality development of the BRI.

In this article, we explore the strengthening economic ties between China and Singapore, highlighting potential opportunities in bilateral trade and investment.

China and Singapore are both member countries in the Regional Comprehensive Economic Partnership (RCEP) Agreement. This is a Free Trade Agreement (FTA) between 15 countries and is the largest FTA in the world. Since the RCEP Agreement entered into force in 2022, China and Singapore’s year-on-year bilateral trade has increased by 4.4 percent by the fourth quarter of 2023.

Source: Ministry of Commerce, China

Singapore’s top exports to China are electrical equipment and nuclear machinery, two categories that have consistently been major imports over an extended period.

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