logo
Singapore's former ambassador to the US warns no roadmap for worsening US-China ties

Singapore's former ambassador to the US warns no roadmap for worsening US-China ties

Business Times08-05-2025

[SINGAPORE] Former Singapore ambassador to the US warned there's no roadmap to improve ties between the US and China as the two square off over everything from trade to Taiwan.
Any US leader 'would want to see America dominant, so there will be this contest,' Chan Heng Chee, currently Ambassador-at-Large with Singapore's Ministry of Foreign Affairs and formerly ambassador to the US between 1996 and 2012, said in an interview with Haslinda Amin at Bloomberg's New Voices event in Singapore. 'There will be a clash head to head.'
At the same time, 'I would not say President Trump himself comes to the table feeling very hostile and wanting to contain China,' she said on Wednesday (May 7). 'One cannot give a roadmap in such a relationship.'
President Donald Trump's rewriting of US trade and defence policies has rocked ties with allies from Europe to Japan, while punishing levies of as high as 145 per cent on China. But South-east Asian nations were also on the receiving end of some of the highest proposed tariff hikes introduced last month.
Nations across the region have pledged in response to increase purchases of a swathe of US goods to strengthen their case for lower tariffs, as the International Monetary Fund warned of significant economic fallout for the trade-reliant region.
'Candidate Donald J Trump ran on the promise of disruption,' Ambassador Chan said. 'He laid out all the policies that he said he would do, and he did exactly that.'
'Most of us were shocked and some were awed. You know why,' she asked. 'It's because of the speed in which things have happened.' BLOOMBERG

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

South-east Asia's polymer production crisis worsens as US-China trade shift looms
South-east Asia's polymer production crisis worsens as US-China trade shift looms

Business Times

timean hour ago

  • Business Times

South-east Asia's polymer production crisis worsens as US-China trade shift looms

[SINGAPORE] South-east Asia's petrochemical industry is facing a double whammy of weakening export demands and potential import surges, as trade tensions could redirect US polymer to the region's already-saturated market, sustaining pressure on production. Polyethylene (PE) and polypropylene (PP), as crucial downstream segments, are encountering 'considerable challenges' in the region, noted commodity markets intelligence firm Argus. This is amid trade uncertainty exacerbated by a US federal appeals court ruling on Wednesday (Jun 11) that President Donald Trump's tariffs can remain in place while it reviews an earlier court decision to block them. The latest ruling complicates newly drafted US-China plans to ease trade tensions. Argus highlighted that additional US polymer supply is anticipated to enter South-east Asia as part of trade flow redirection, driven by cost-competitiveness and the low likelihood of countries in the region imposing retaliatory tariffs on US cargoes. The London-headquartered research firm found that some US producers and regular exporters had already begun sending their cargoes to Vietnam instead of China. 'However, the situation remains fluid, and any continued shift in trade flows could contribute to additional supply entering the South-east Asian market,' the research firm said. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up During the US-China trade war in Trump's first term in office, US polymer exports were redirected to countries in the Asia-Pacific. Specifically, US PE exports to Singapore and Malaysia rose by 328 per cent and 264 per cent, respectively, Argus noted in another report released on May 30. Plastic goods pressuring demand Meanwhile, trade uncertainty could prompt new trade routes for finished plastic goods, beyond the polymer trade. Chinese plastic products once bound for the US will likely seek alternative markets – including South-east Asia. This threatens to further strain the region's export-dependent finished goods sector, putting indirect downward pressure on polymer demand. In 2024, around 8 per cent of the US' imported finished plastic goods came from South-east Asian countries, which now see the risk of a significant fall in demand, noted Argus. Around 17 per cent of China's PE imports were from the US in 2024. The intelligence firm noted that South-east Asian countries could explore opportunities to increase run rates and export PE to China with low-cost feedstocks amid the trade tensions between the world's two largest economies. 'But this remains a challenge for the region, as it predominantly relies on naphtha as a feedstock, which is less cost-competitive than lighter options,' it added. It also said that limited upstream integration further disadvantages the region, compared with markets in the Middle East and North-east Asia, where more integrated supply chains enhance cost efficiency. China factor Other than trade uncertainty, China's expanding polymer production capacity also threatens to deepen South-east Asia's existing polymer production crisis, where some regional crackers had been in extended shutdowns since late 2024. Fumiko Dobashi, manager of Asia-Pacific chemicals price reporting at S&P Global, highlighted a trade dynamic between the US, China and Asia in a briefing on Jun 3: The US exports raw materials such as ethane, liquefied petroleum gas and polymers, while Asia ships back finished plastic products and rubber products. However, China has been expanding its polymer capacity, transforming itself into a net exporter from a net importer and adding to the polymer flood into nearby regions, said Dobashi. She noted that while the US remains a major polymer exporter, the trend of China becoming a significant player continues, with the country increasing its exports to Asean nations such as Vietnam. Declining operating rates Over the past five years, South-east Asia's PE and PP operating rates have declined by 25 per cent and 20 per cent, respectively, on average as exports fell and imports rose, Argus noted. Meanwhile, the region's PP net trade position has shifted from net exporter to net importer since 2022; as has its PE trade position since 2024, amid China's accelerated progress towards self-sufficiency and increasing exports. Specifically, China's PP exports into the region have trebled to 636,000 tonnes over the past five years, mainly to Vietnam and Indonesia. China's focus on self-sufficiency also significantly reduced South-east Asia's PE and PP exports by 1.8 million tonnes, or 37 per cent, over the same period, according to the research firm. It added that the region's polymer prices will be further depressed by shrinking downstream export demand and more supply entering the market.

Irish government eases rent cap to boost home supply
Irish government eases rent cap to boost home supply

Business Times

timean hour ago

  • Business Times

Irish government eases rent cap to boost home supply

[DUBLIN] Ireland's senior government ministers have approved new rental control reforms as part of efforts to tackle the country's acute housing shortage by luring more apartment investors to the market. An annual rental cap of 2 per cent currently in place in rent pressure zones in urban areas will be expanded nationwide but newly built apartment developments will be exempt. These will be subject to an annual cap linked to the Consumer Price Index instead, Housing Minister James Browne said after a cabinet meeting on Tuesday (Jun 10). Landlords will have the right to reset rent where it is below market at the end of a tenancy, according to the Housing Ministry. Currently rents are tied to the property. The new measures are to come into place from March 1 2026, the minister said. Boosting apartment completions is the key force driving the proposal – a key test for Irish ministers who have pledged to build over 300,000 new homes by the end of 2030, as housing remains a top concern for voters. Industry lobbyists had said that target would be missed unless rents were reformed for apartments, arguing that the annual cap deterred private capital looking for returns and stifled supply. Countries like Germany and the Netherlands have faced similar criticism from institutional investors. Rental pressure zones in Ireland were initially ushered in as a temporary fix for soaring rental costs that reached 4 per cent per annum in 2016, but was amended to 2 per cent per annum in 2021. Other measures to be introduced include: An end of no fault evictions in the case of large landlords with four or more tenancies The introduction of rolling-six year tenancies of minimum duration for smaller landlords (three or fewer tenancies) with restricted grounds for ending a tenancy All landlords will be able to sell a property with tenant in-situ at any time Provisions for build-to-rent student accommodation will be looked at separately, a person familiar said. 'The government wants to be clear that at this time we recognise rents are very high. We also want to be clear that we simply need new investment in rental accommodation, particularly apartments for rent,' Browne told reporters in Dublin. BLOOMBERG

VietJet in talks to order about 100 Airbus jets, Bloomberg News reports
VietJet in talks to order about 100 Airbus jets, Bloomberg News reports

CNA

time2 hours ago

  • CNA

VietJet in talks to order about 100 Airbus jets, Bloomberg News reports

VietJet Aviation JSC is in talks to order around 100 more Airbus SE narrow-body jets, with a potential deal as early as next week's Paris Airshow, Bloomberg News reported on Wednesday, citing sources familiar with the matter. The low-cost Vietnamese airline is looking to buy more of the A321neo model, according to the report. VietJet, which will attend the air show in the French capital, said it could not confirm the report.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store