The next chapter of China-S'pore financial connectivity will be exciting

CHINA'S economy is at a major inflection point, balancing three objectives:

In the short term, these three objectives may at times be in conflict, presenting a trilemma of difficult trade-offs for policymakers. But if successfully executed, they are mutually reinforcing and will lay the foundation for a more sustainable and vibrant economy.

China's economic restructuring has deep implications for Asia. A new configuration - a new regional value-chain - is taking shape across the region, driven by three features of China's economic transformation.

First, China is shifting from a labour-intensive industrial structure to a more skill- and technology-intensive one. China is inshoring more high value-added production within the country. This obviously poses challenges for competing high value-added producers in Asia, but China is also offshoring lower v…