Singapore and U.S.-China tensions: How is Singapore navigating evolving U.S.-China dynamics and how are companies in Singapore perceiving and responding to U.S.-China tensions?

U.S.-China tensions increasingly manifest itself in trade and 2025 saw the implementation of U.S.-tariffs toward the whole world, including Singapore – a small and trade-dependent country with strong relations to both China and the U.S. As an on-going issue, little has been written on the impact of these tensions on Singapore’s positioning and how great power rivalry interacts with Singapore as a business hub. Hence, this study explores how Singapore navigates the evolving U.S.-China dynamics and how companies in Singapore are perceiving and responding to U.S.-China tensions. Using the U.S.-driven tariffs as a proxy for U.S.-China tensions, it analyses Singapore’s response through political statements and its actions, primarily during January-July 2025. Based on field research, in the form of qualitative interviews and a survey, conducted in Singapore between May and June 2025, it analyses the perceptions and responses of companies in Singapore. It finds that Singapore’s foreign...Show moreU.S.-China tensions increasingly manifest itself in trade and 2025 saw the implementation of U.S.-tariffs toward the whole world, including Singapore – a small and trade-dependent country with strong relations to both China and the U.S. As an on-going issue, little has been written on the impact of these tensions on Singapore’s positioning and how great power rivalry interacts with Singapore as a business hub. Hence, this study explores how Singapore navigates the evolving U.S.-China dynamics and how companies in Singapore are perceiving and responding to U.S.-China tensions. Using the U.S.-driven tariffs as a proxy for U.S.-China tensions, it analyses Singapore’s response through political statements and its actions, primarily during January-July 2025. Based on field research, in the form of qualitative interviews and a survey, conducted in Singapore between May and June 2025, it analyses the perceptions and responses of companies in Singapore. It finds that Singapore’s foreign policy is driven by principles such as free trade, a rules-based order and international law. Further, it finds that companies in Singapore are concerned and impacted by U.S.-China tensions. Yet, most companies consider Singapore to be one of the better places to be located in during U.S.-China rivalry, which is partly attributed to Singapore’s foreign policy. Thus, this exploratory study shed light on the impact of U.S.-China tensions on Singapore’s foreign policy, on firm-level responses and business perceptions on Singapore’s future as a business hub in relation to U.S.-China dynamics and provides a starting point for further research on this emerging issue.Show less

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Singapore and U.S.-China tensions: How is Singapore navigating evolving U.S.-China dynamics and how are companies in Singapore perceiving and responding to U.S.-China tensions?