DPM: US, China must find new equilibrium for peace, prosperity

He suggests the two powers lead world together in tackling shared challenges

- Tham Yuen-C

The United States and China must find a new equilibrium for there to be peace and prosperity, but this may take some time, said Deputy Prime Minister Heng Swee Keat yesterday.

Both countries are competing within the same interconnected, interdependent system, and decoupling “will lead to mutually assured economic value destruction”, he said.

“At best, neither can fulfill their maximum economic potential. There could be a regression in living standards, not only for the US and China, but also the rest of the world. At worst, economic decoupling is a slippery slope towards strategic miscalculation and a disastrous conflict.”

In the meantime, countries can foster growth and stability by working together to shape the course of global action, he said.

Singapore can cooperate with like-minded countries as pathfinders to catalyse change, work with its neighbours to keep Asean open, inclusive and credible, and make globalisation work for its people.