New agreements aim to boost trade, investment, and digital collaboration
In a move to further strengthen ties, Singapore and China have signed over 20 memoranda of understanding and agreements, including enhancements to the China-Singapore Free Trade Agreement (CSFTA). The agreements, finalized during the 19th Joint Council for Bilateral Cooperation (JCBC) on December 7, 2023, are designed to bolster trade, investment, and cooperation in sectors such as food security, health, energy, and finance.
The upgraded CSFTA will improve market access for Singapore businesses in China’s service sectors and eliminate foreign equity limits in 22 industries, including construction, retail, and architecture. This makes it easier for Singaporean investors to operate in China, providing more transparent and liberalized trade rules.
A new chapter on telecommunications services will clarify sector regulations, fostering innovation and collaboration. Additionally, both countries have agreed to establish a digital policy dialogue to explore synergies between Singapore’s Smart Nation initiative and China’s Digital China plan, covering topics like artificial intelligence, digital trade, and commercial data flows.
Other key initiatives include new digital finance ventures, such as the expansion of Exchange Traded Funds (ETFs) between the Singapore Exchange (SGX) and the Shanghai Stock Exchange. A pilot project will also enable travelers from both nations to use China’s digital currency (e-CNY) for tourism spending, enhancing cross-border financial interactions.
These agreements are expected to deepen economic cooperation and set the stage for more robust collaboration in emerging fields like digital finance and technology, as Singapore and China continue to build on their evolving partnership.
