President Xi’s visit further deepened bilateral relationship

Singapore enjoys “warm and substantial ties” with China says Prime Minister Lee Hsien Loong, who adds that the two countries will continue to build on what they have achieved since establishing diplomatic relations 25 years ago.

SINGAPORE: Chinese President Xi Jinping’s 2-day state visit has further deepened the “warm and substantial” bilateral ties between Singapore and China, Prime Minister Lee Hsien Loong said on Saturday (Nov 7).

In a Facebook post, Mr Lee said he had a “fruitful” meeting with Mr Xi at the Istana. Singapore’s Ministry of Foreign Affairs (MFA) said in a statement that both expressed satisfaction with an agreement to launch negotiations to upgrade the China-Singapore Free Trade Agreement, and endorsed the launch of the two nations’ third government-to-government project in Chongqing, southwest China.

Prime Minister Lee expressed confidence in the long-term outlook for China’s economy. On financial cooperation, both leaders agreed that RMB cooperation has been a highlight in bilateral relations, with great potential to grow further, MFA said.

Mr Lee proposed expanding cooperation in capital markets, particularly in stock and derivatives linkages and mutual recognition of fund products. He also expressed strong support for the inclusion of the RMB in the International Monetary Fund’s Special Drawing Rights basket.

“PM Lee noted that as China continues to modernise its financial system, it will face complex challenges, but he expressed confidence that China has the right regulatory leadership and expertise to keep the financial system and capital markets stable and healthy, so as to support China’s economy,” MFA said.

On the regional front, Mr Lee accepted Mr Xi’s invitation to Singapore to participate in the G20 Meetings and G20 Summit to be held in China in 2016.

President Xi and him agreed to strengthen collaboration between ASEAN and China. Both sides will mark the 25th anniversary of dialogue relations in 2016.

Mr Xi also thanked Singapore for facilitating the meeting between him and Taiwan President Ma Ying-jeou – the first between leaders from both sides across the Taiwan Strait since the 1949 civil war in China.

Singapore and China inked several agreements on Saturday and issued a joint statement saying that they agreed to establish an “all-round cooperative partnership”.

Prime Minister Lee and his wife Ho Ching sat down with Mr Xi and his wife Peng Liyuan for lunch at the Singapore Botanic Gardens where an orchid hybrid “Papilionanda” was named in Mr Xi and Mdm Peng’s honour. Mr Xi and Mdm Peng left for China on Saturday evening.