Singapore PM Lee Hsien Loong backs China for trading bloc

Singaporean PM Lee Hsien Loong says there is no consensus on whether China should join a trans-Pacific free trading bloc but that he will continue to canvass views among members.

Singapore Prime Minister Lee Hsien Loong and Anthony Albanese during a meeting at Parliament House on Tuesday. Picture: Getty Images

Singaporean Prime Minister Lee Hsien Loong says there is no consensus on whether China should join a trans-Pacific free trading bloc but that he will continue to canvass views among members.

Following annual bilateral talks with Anthony Albanese on Tuesday, Mr Lee advocated for China to be able to join the ­Comprehensive and Progressive Agree­ment for Trans-Pacific Partnership amid his belief it was possible if it was negotiated properly.

Australia and Singapore have been split on whether China should be able to join the CPTPP, with Canberra expressing concern over Beijing’s ability able to meet the free-trading bloc’s conditions.

With Singapore the current chair of the committee considering new applications, Mr Lee said it would be “good” if China was able to join but consensus was needed among all members.

“They will, of course, have to meet the requirements fully of the conditions and the obligations,” Mr Lee said. “But I think that is something which is possible and can be negotiated.

“But, of course, for China to join the CPTPP there has to be consensus among all the existing members. And it so happens that Singapore is chairing the CPTPP committee. And as chair we will do our duty and have been canvassing views among the participants.”

Mr Lee also called accelerating economic decoupling between the US and China “a worry”, warning US President Joe Biden’s recent decision to curb supply of US chips to China as “a very serious one” which may have wider implications on national security.

“Decoupling is a worry,” Mr Lee said. “National security concerns are real. How wide or how narrowly they are defined is (a) judgment of each government and administration. I think the Biden administration’s most recent move is a very serious one.

“We do worry that valid national security considerations may trigger further consequences and may result in less economic co-­operation, less interdependency, less trust and, possibly, ultimately a less stable world.”

Mr Lee’s comments come as Australia and Singapore signed a new green economy agreement to enhance collaboration between the nations as they transition towards net-zero emissions.

The bilateral agreement will build on the existing co-operation under Australia’s Comprehensive Strategic Partnership with Singapore, with the government injecting an initial investment of $19.4m over four years.

Mr Albanese said the “world-first” agreement would seek to support clean energy innovation, unlock business opportunities, shore up reliable and secure supply chains and provide certainty for Australian exporters.