Singapore turns into hub for Chinese language tech amid US tensions – #NewsEverything #Asia

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A few of China’s largest expertise companies are increasing operations in Singapore as tensions rise between Washington and Beijing.

Tencent and Alibaba are rising their presence within the metropolis state whereas TikTok proprietor ByteDance is reported to be investing billions of {dollars}.

Thought-about impartial territory, Singapore has good ties to each the US and China.

Relations between Washington and Beijing are rising more and more hostile, notably over expertise.

Tencent introduced this week it was “increasing its enterprise presence in Singapore to assist our rising enterprise in South East Asia and past”.

The brand new regional workplace is described as a “strategic addition” to its present workplaces in South East Asia.

Tencent’s WeChat messaging app is going through a ban this month within the US, together with TikTok, below the Trump administration’s clampdown on Chinese language apps and tech companies.

Donald Trump has already imposed bans on Chinese language telecoms agency Huawei.

“Given the US-China tensions in tech and the heightening threat of decoupling, it is smart for Chinese language tech firms to separate operations in China and out of doors of China,” mentioned Tommy Wu at Oxford Economics.

“Singapore could be a super location given town state’s comparative benefit in tech, its geographic proximity to China and as an innovation hub in South East Asia.”

Singapore has at all times been seen as a regional base for Western companies due to its superior monetary and authorized system. Now it is firmly on the radar of Chinese language firms.

The political turmoil in Hong Kong and the introduction of China’s controversial nationwide safety legislation has seen many companies search for a extra steady enterprise setting inside Asia.

Masking China

However there’s one more reason why Singapore is so enticing to China, in line with Nick Redfearn, deputy chief government at UK-based consultancy Rouse.

It might clarify why town state has attracted a lot overseas direct funding (FDI) in comparison with different South East Asia international locations he mentioned.

“This is actually because regional headquarters, working on behalf of guardian firms, act because the overseas investor in international locations such because the Philippines, Indonesia, Vietnam and elsewhere.

“This may help Chinese language firms keep away from the looks of Chinese language funding,” he mentioned.

South East Asia overtook the EU to change into China’s largest regional buying and selling associate in 2020, in line with Mr Redfearn.

International footprint

Rui Ma, a Chinese language tech professional and investor, added: “You have seen Western firms (Google, Fb, LinkedIn and plenty of extra) make it their Asia Pacific headquarters for some time now, so it is pure Chinese language firms additionally think about it for a similar causes.

“I feel the latest US-China geopolitical tensions solely make it much more enticing, however that is not the one or main purpose.”

She says globalisation is one other driving power. “If Western firms will be international, why cannot we?

“Chinese language firms are very a lot prepared to take a position for the long run and will not be going to be content material to be left behind in the case of future alternatives.”

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