Population (2020): 1.4 billion GDP (2020): RMB 95.1 trillion World Bank “Ease of Doing Business” Rank (2020): 31 Bilateral Trade with Singapore (2020): S$136.2 billion Trading Partner Rank (2020): 1
Sources: World Bank, Department of Statistics Singapore, Ministry of Commerce of the People’s Republic of China
China is the world’s most populous country and the world’s second largest economy. Since China began to open up and reform its economy in 1978, it has seen rapid economic development. Based on its 14th Five Year Plan (FYP; 2021-2025), China aims to pursue high quality and sustainable growth by focusing on boosting domestic consumption, leveraging technology and innovation, building self-reliance, as well as driving green and digital transformation.
Under China’s dual circulation strategy, domestic consumption will be a key driver of economic growth, complemented by economic linkages with international markets. The rise of the silver economy and Gen Z consumers also presents opportunities for Singapore companies to target new emerging consumer services sectors, such as eldercare/healthcare and product categories such as nutritional or luxury products. Singapore retailers and exporters in the lifestyle and consumer sector can ride on the growth in China’s domestic consumer demand to capture these market opportunities.
China has set goals to achieve peak carbon emissions by 2030, and carbon neutrality by 2060. Its national carbon trading market was also launched in July 2021. China’s transition towards a green economy holds opportunities for Singapore companies that offer green and sustainable solutions.
In addition, China also aims to achieve digital transformation of traditional industries (e.g. manufacturing, education, trade). This would drive the emergence of new digital industries (e.g. AI) and digital infrastructure (hardware and software, e.g. data centres) to support the digital economy. These present new market opportunities for Singapore companies with niche capabilities in smart manufacturing and i4.0 solutions.
Home to more than 150 unicorns1, China is viewed as one of the most promising markets in the world for technology innovation. In addition, the Chinese State Council has been launching initiatives to support entrepreneurship and innovation. The innovation ecosystem in China holds opportunities for Singapore technology startups and SMEs.
1 https://tracxn.com/d/unicorn-corner/unicorns-list-china
The 14th FYP also highlighted China’s intention to develop mega regions, such as Beijing-Tianjin-Hebei (Jing-Jin-Ji) Metropolitan Region, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and Chengdu-Chongqing Economic Circle. The regional integration and urbanisation present opportunities for Singapore companies in infrastructure, transport and logistics, and modern services sectors.
Free Trade Agreements with China enhance Singapore-based companies’ access to the vast Chinese market, further boosting bilateral trade and investment relations.
Key Platform Projects in China serve as strategic channels for Singapore and China to share experience and collaborate in various areas, such as green economy and digital connectivity.
Provincial Business Councils (PBCs) are bilateral platforms to promote economic exchanges and cooperation between Singapore and China at the provincial level. Click here for the current list of PBCs and appointments.
GIA is a network of Singapore and overseas partners in major innovation hubs and key demand markets, with a focus on technology and innovation.
Joint Innovation Calls are partnerships to support cross-border collaborative projects on technology development and co-innovation.
Enterprise Singapore has 9 Overseas Centres in China, based in Beijing, Chengdu, Chongqing, Dalian, Guangzhou, Qingdao, Shanghai, Wuhan, and Xi’an.