China plan to expand importance of S'pore

IN response to expected flat world trade growth abroad and moderate economic activity at home, China is packaging a series of initiatives to help bolster both. The plans will significantly expand Singapore's importance to South-east Asia's financial, trade and logistics services.

China's recently announced "One Belt, One Road" plan embraces twin goals to tackle these challenges. "One Belt" refers to the economic belt along China's traditional Silk Road connecting China with Europe. The "One Road" is the new "Maritime Silk Road" between China, South-east Asia and Africa. The aim is for China to invest in the infrastructure and linkages associated with these "Roads" to help bolster its overseas trade. This in turn will stimulate production and consumption demand at home.

In one policy, China hopes to address challenging internal and external economic headwinds and rebalance its economy. By "rebalancing", Beijing intends to promote the development of a consumption-led economy, to supplement its traditional success in exports. The policy will also have the planned benefit of spurring economic growth in its laggard western provinces to complement its economic dynamos in the east of the country.