Choosing between US and China will be painful, says PM Lee in CNN interview

SINGAPORE — If relations between the United States and China are not stable and not amicable, Asian countries will be pressured very hard to choose sides and that will be a “very painful” choice, said Prime Minister Lee Hsien Loong.

“It is not a happy engagement right now, but (the US) is not pulling out from the field. I think what we would like to see in Asia is the US engaged actively, not only with China but also with other Asian countries,” he said in an interview with global news network CNN that was aired on Sunday (Oct 6).

When asked by CNN host Fareed Zakaria about what these countries will do when made to choose, Mr Lee said the US’ partners and treaty allies — namely Japan, South Korea, the Philippines, Australia, New Zealand and Thailand — will be very unhappy.

“All of them have China as their biggest trading partner. So if you ask them to choose and say I therefore must cut off my legs with my biggest trading partner, I think you will put them in a very difficult position,” said Mr Lee, adding that Singapore, while not an ally of the US, also has its biggest trading legs with China.

Mr Lee had previously said Singapore will act in its own interests when it comes to navigating the stormy technological and economic conflict between the two superpowers.

Asked about the impact of the trade war on Singapore, given its position as a staunch US partner and its close economic links to China, Mr Lee said: “We see that as a problem for us, but in fact, it is a problem for the world.

“All of us have depended on stable US-China relations, increasingly close US-China co-operation, investments, trade as well as flows of talent and ideas. The way things are going now, that benign trend is being disrupted and perhaps even turned around.

“I think that is bad for the world.”

TECH CONFLICT

The conflict accelerated in May when the US imposed a trade ban against Chinese telecommunications giant Huawei, which is also one of the largest players when it comes to fifth-generation telephony systems today.

Mr Lee said the tech world is heading towards being a fragmented one — the loss of trust on both sides will create doubt as to why one side should allow the other’s operating systems, electronic chips and technology to dominate in their own economies.

He said: “So, if you go in this way, you must end up bifurcated on across a wide range of things in terms of technology and systems. The rest of us carrying two handphones is the least of our problems.”

Addressing another question on how countries will respond to the pressure to pick either American or Chinese systems, Mr Lee pointed out that the pressure comes from the US, which has requested other countries, including its allies, to avoid China when choosing what tech system to use.

While some have co-operated with the US, others have concluded that this is “a big ask”, he said.

HONG KONG

Asked about the unrest in Hong Kong, Mr Lee said he feels sorry for Hong Kong’s situation as it is a city with plenty of talent, enterprise and potential.

“They are right on the doorstep of China and China has been a backstop for them, which enabled them to grow and to overcome many economic rough spots. But at the same time, they are part of China and this is a big psychological change, which is not easy for the population to get used to,” Mr Lee said.

“Fundamentally, it is a question of hope for the future for the young people. If these are not radically addressed, it is very difficult to overcome the problems,” he added.

Mr Zakaria then asked if Mr Lee was surprised that China has not shut down the protests with force, to which the prime minister replied no.

Giving his take on the escalating protests, which began in June, Mr Lee said China is now confronted with an uncomfortable problem: “If (the Chinese) do the wrong thing, (they) can make things a lot worse. I think they are very conscious of that.

“They hope that the Hongkongers can sort it out but the Chief Executive has a very difficult task.”