China – Clement Tan

May 31, 2025November 15, 2025

Pentagon chief tells Asian allies: Raise defence spending to 5% of GDP like Europe

By Clement Tan | May 31, 2025 | The Straits Times

SINGAPORE – The US wants Asian countries to increase their defence spending to match levels that Washington expects of European allies, saying that they bear the brunt of the “threat” of China and North Korea in their backyards.

US Secretary of Defence Pete Hegseth reassured allies that the Indo-Pacific remains the US “priority theatre” in his address on May 31 at the 22nd Shangri-La Dialogue, a leading security and defence forum focused on the Asia-Pacific.

With nations taking ownership of their own defence, the Pentagon chief said this would in turn boost the collective effort to deal with the “threat” of China’s quest for “hegemonic power in Asia”.

“It is hard to believe I can say this – but Asian allies and partners should look to countries in Europe as a newfound example. Nato members are pledging to spend 5 per cent of their GDP (gross domestic product) on defence, even Germany,” Mr Hegseth said.

“How can it make sense for countries in Europe to do that while key allies and partners in Asia spend far less in the face of a far more formidable threat from communist China, not to mention North Korea?” the former Fox News presenter added.

May 31, 2025November 15, 2025

Macron touts ‘positive new’ Asia-Europe alliance amid US-China rivalry

By Clement Tan | May 31, 2025 | The Straits Times

SINGAPORE – French President Emmanuel Macron urged Asia and Europe to work together in a new coalition based on common principles to push back against the inevitability of being caught between global superpowers.

Singling out the China-US rivalry as the biggest risk confronting the world, the French leader said he wants to be able to cooperate with the US at the same time as compete with but not confront China – while adopting a “demanding approach” that puts France’s interests first.

In expanding on the French doctrines of “strategic autonomy” and “freedom of sovereignty” to a gathering of global leaders at a pre-eminent security forum in the Asia-Pacific, President Macron sketched out a plausible “third way” for Europe and the rest of Asia amid significant shifts in the world order and a world beset by multiple crises.

“The time for non-alignment has undoubtedly passed, but the time for coalitions of action has come and requires that countries capable of acting together give themselves every means to do so,” Mr Macron said in his keynote address at the 22nd Shangri-La Dialogue on May 30.

December 5, 2024November 15, 2025

To counter Trump’s looming tariffs, Indo-Pacific nations band together to boost trade

By Clement Tan | Dec 5, 2024 | The Straits Times

SINGAPORE – Agency, agency, agency.

With Trump 2.0 tariffs lurking on the horizon, that was the common refrain invoked by several world leaders visiting Singapore this week, in asserting the idea that smaller economies have the power to act for themselves to mitigate the fragmenting effects of the rivalry among great powers such as China and the US.

In the Asia-Pacific, that could well mean increasing regional trade to ensure economic stability. South-east Asia as a bloc is expected to be the world’s fourth-largest economy after the US, China and India by the end of this decade.

“In the context of intense pressure on the global trading system, our region has agency,” Mr Don Farrell, Australia’s Minister for Trade and Tourism, said on Dec 2 in an address at the annual Next Step (Solutions to economic problems) Global Conference. It was organised by the Lee Kuan Yew School of Public Policy and Peterson Institute for International Economics.

“In 2025, it will be incumbent on those of us who understand the benefits of global trade rules to actively engage in support of the multilateral trading system with the World Trade Organisation at its core,” he added.

September 30, 2024November 15, 2025

3 superpowers by 2050: Tony Blair on how world leaders’ voices can be heard loud and clear

By Clement Tan | Sept 30, 2024 | The Straits Times

SINGAPORE – Governing leaders should prepare to navigate a complex world order with three superpowers in ways that may enhance their own positions and interests.

That was the frank assessment of former British prime minister Tony Blair in an interview with The Straits Times on Sept 23, while he was in Singapore for the annual Asia Summit of American think-tank Milken Institute.

“You have got to decide where your country fits in the world, because it is going to be a world that is going to be multipolar, (where there) will be, in my view, by the middle of this century, three superpowers effectively: America, China and probably India,” said Mr Blair, who is a self-professed centrist.

“Therefore, you are going to have to build strong alliances that enable you to talk to these three superpowers with some level of, you know, equality,” he added.

June 2, 2024June 6, 2024

‘US can be secure only if Asia is’: US defence chief seeks to deepen strategic alliances in region

By Clement Tan | June 2, 2024 | The Straits Times

SINGAPORE – The United States wants to meld its strategic alliances and partnerships in Asia into a “new convergence” based on the rule of law – a commitment that its defence chief said will continue regardless of the outcome of the presidential election in November.

Mr Lloyd Austin evoked “a future of fresh and growing partnerships” in a speech at the Shangri-La Dialogue on June 1, which immediately elicited a question from a Chinese military delegate on whether the US was planning to build “a Nato-like system in the Asia-Pacific region”.

In response, the US Secretary of Defence described it as a strengthening of relationships with allies and partners based on a common vision and common values.

He also emphatically rejected the Chinese delegate’s suggestion that Nato’s eastern expansion was responsible for the war in Ukraine, eliciting applause from many in the audience.

January 26, 2024June 6, 2024

Taiwan’s political disrupter could be kingmaker in a split parliament. Here’s why it matters

By Clement Tan | January 26, 2024 | CNBC.com

TAIPEI — “One day, we’ll get our victory,” Ko Wen-je, the vanquished presidential candidate for the Taiwan People’s Party, said at his concession speech two weeks ago.

He urged his disappointed young supporters, some of them crying, not to give up, and framed himself as a one-man social movement crusading for political change.

“For me, over the last 10 years, whether I was in office or standing for election, I have always regarded it as a social movement aimed at changing political culture. Since this social movement has not fully materialized, let’s keep working hard,” the former Taipei City Mayor told supporters in Mandarin.

While he may have finished last in the first competitive three-way race for the Taiwan presidency since 2000, Ko garnered more than a quarter of the popular vote — disrupting the usual stranglehold of the dominant political parties, the ruling Democratic Progressive Party and Kuomintang.

The 63-year-old clearly resonated with the young and educated as he spoke plainly into their everyday bread-and-butter issues, including soaring housing costs and stagnant wages at a time of high inflation.

September 18, 2023June 6, 2024

‘A real big deal’: Biden backs economic corridor as shifting geopolitical alliances fragment the global economy

By Clement Tan | September 18, 2023 | CNBC.com

NEW DELHI — Even for those accustomed to the ebbs and flows of the U.S.-Saudi Arabia relationship, the sight of President Joe Biden extending a handshake to Saudi Crown Prince Mohammad bin Salman at the recent G20 leaders’ summit in New Delhi was quite the turnaround.

After all, Biden had warned last October of “consequences” after the Saudi-led oil cartel OPEC decided to cut crude production and boost prices amid Russia’s war in Ukraine.

Roughly a year on, Saudi Arabia is not only one of six new invitees to the China-dominated BRICS coalition, but also a signatory to the Biden-led pact for a ship-to-rail economic corridor linking India with Middle Eastern and European Union countries unveiled on the sidelines of the G20 summit — framed as a counter to China’s decade-old Belt and Road Initiative.

Saudi Arabia’s double dipping underscores the range of economic and strategic opportunities that abound for the various economies caught between the dueling U.S. and China as they build their own alliances and spheres of influence. U.S. and other major Western nations have been keen to “de-risk” their economic — and not decouple — from China on grounds of national security.

This is also consequently leading to a fragmentation of the world’s economy as protectionism and nationalism impede global trade, while giving rise to a complex matrix of relationships in a multipolar world that are not always straightforward as nations pursue their self interests.

July 24, 2023October 15, 2023

China vows to ‘adjust and optimize’ property policy in ‘tortuous’ economic recovery

By Clement Tan | July 24, 2023 | CNBC.com

China’s top leaders pledged to “adjust and optimize policies in a timely manner” for its beleaguered property sector, while elevating stable employment to a strategic goal, along with other pledges to boost domestic consumption demand and resolve local debt risks.

Chaired by President Xi Jinping, the Communist Party’s top decision-making body said it would implement a “counter cyclical” policy and stick largely to a prudent monetary policy and pro-active fiscal policy, according to a readout published late Monday of a quarterly meeting of the Politburo.

The July Politburo meeting typically sets the tone for China’s economic policies for the second half of the year, with market watchers eagerly awaiting firmer guidance on policy support for faltering growth in the world’s second-largest economy.

“Currently, the economy is facing new difficulties and challenges, mainly due to insufficient domestic demand, difficulties in the operation of some enterprises, many risks and hidden dangers in key areas, and a grim and complex external environment,” Xinhua quoted the Politburo as saying.

The post-pandemic economic recovery will proceed in a “wave-like” fashion in a “tortuous” process, it added. The Chinese phrase for risk appeared at least seven times in the readout, underscoring the government’s focus on its containment.

June 4, 2023October 15, 2023

U.S. and China trade barbs at top security summit as Taiwan Strait tensions simmer

By Clement Tan | June 5, 2023 | CNBC.com

SINGAPORE — A handshake and a ministerial lunch were all that the U.S. defense chief and his Chinese counterpart shared on the sidelines of a regional security summit in Singapore.

Ahead of the annual Shangri-La Dialogue which kicked off Friday, Beijing rejected a U.S. request for a bilateral meeting between its defense minister, Gen. Li Shangfu, and his American counterpart Lloyd Austin.

On Saturday, when Austin took to the stage at the summit where global defense leaders gathered, he called out China for refusing to engage in military dialogue.

“Dialogue is not a reward. It is a necessity. A cordial handshake over dinner is no substitute for substantive engagement,” Austin said in prepared remarks. “The more that we talk, the more we can avoid the misunderstandings and miscalculations that could lead to crisis or conflict.”

China’s Li responded a day later by accusing the U.S. of lacking sincerity and behaving in a manner not befitting of a superpower.

“It is undeniable that a severe conflict or confrontation between China and the U.S. will be an unbearable disaster for the world. China believes that a major country should behave like one,” Li said Sunday in a translation provided by summit organizers. It was his first address to an international audience in his current role as China’s defense chief.

May 30, 2023October 15, 2023

China’s record high youth unemployment is deepening economic scars

By Clement Tan | May 30, 2023 | CNBC.com

As youth unemployment in China rises to a record high, college graduates are caught in a perfect storm — with some forced to take on low-paying jobs or settle for jobs below their skill levels.

Official data shows urban unemployment among the 16- to 24-year-olds in China hit a record 20.4% in April – about four times the broader unemployment rate even as millions more college students are expected to graduate this year.

“This college bubble is finally bursting,” said Yao Lu, a professor of sociology at Columbia University in New York. “The expansion of college education in the late 1990s created this huge influx of college graduates, but there is a misalignment between demand and supply of high skilled workers. The economy hasn’t caught up.”

The scourge of underemployment is another issue that Chinese youths and policymakers have to grapple with.

In a paper Lu co-authored with Xiaogang Li, a professor at Xi’an Jiaotong University, the professors estimated at least another quarter of college graduates in China are underemployed, on top of the rising youth unemployment rate.