Critical for US, China to work together to uphold rules-based international order: Ng Eng Hen

SINGAPORE — The United States’ unilateral trade tariffs and China’s actions in the South China Sea have deviated from global norms and challenged the rules-based international order that has benefitted the Asia Pacific region, said Defence Minister Ng Eng Hen on Sunday (June 3).

Speaking at a plenary session on regional security cooperation at the Shangri-La Dialogue, Dr Ng cautioned that if both powers cannot work together to uphold the international order, then the world will be in for rough times ahead. 

“The US and China, by virtue of their sheer size, both first and second militarily and economically, will be critical players in this evolution to Globalisation 2.0, whether by their application or articulation of new rules,” said Dr Ng.

“It would be a lose-lose scenario for the world if the US and China are unwilling to work together for an inclusive system that both large and small states benefit from, and where rules that apply to all,” he added.

“We hope that enlightened minds and leadership will prevail and the US and China avoid a trade war which can only lead to more losers than winners.”

Dr Ng stressed that the post-World War II rules-based order – both in trade and security – has not broken down. But local politics and the shift in relative strengths of global or regional powers are clearly changing the rules of the international order.

He noted how America, having championed the entrenched order of globalisation, “is itself re-visiting the status quo, to address perceived inequalities”.

He cited as example the US’ recent unilateral tariffs on steel and aluminium imports based on national security ground, even though its military requirements for steel and aluminium may only represent 3 per cent of US production.

“The US has put forth its case for such a unilateral action, whether or not other countries accept that it complies with World Trade Organisation rules, let alone principles,” he said.

“Similarly for security reasons, claimant states in the South China Sea have taken unilateral actions in disputed areas to protect their own core interests,” added Dr Ng.

He cited how China has staked its claims of the strategic waters on historical grounds.

Despite the 2016 ruling by the Permanent Court of Arbitration at The Hague against China in a case brought about by the Philippines, Beijing has intensified its built-up of Imagery, Surveillance and Reconnaissance and even counter-offensive weapon systems on disputed territories, “as a forward position against possible encirclement”, said Dr Ng.

He added in both instances of China’s actions in the South China Sea and America’s moves on trade tariffs, “core security considerations have been used to justify, if not make imperative the need for such actions”.

“Whatever the merit of arguments, these deviations from global norms challenge the status quo and accepted rules which has hitherto benefitted Asia, and the regions beyond,” he said.

“All of us would agree that it is in our collective interest to preserve a system that has lifted millions in Asia from poverty,” he added, citing how for Asean alone, its GDP per capita has grown 30 times in the last five decades.

China and India have also grown exponentially at the average rates of 10 per cent and 6 per cent respectively each year, which explains why in “a reversal of roles with the US”, it is Chinese President Xi Jinping who has championed globalisation, said Dr Ng.

He recalled Mr Xi’s keynote address at the opening of 2018 Boao Forum for Asia in which the Chinese leader had called on countries to “stay committed to openness, connectivity and mutual benefits, build an open global economy and reinforce cooperation within… multilateral frameworks.”

These “wise words” show China understands that for Asia to continue to prosper, it needs the stability that only a rules-based order can provide, said Dr Ng.

“But it is also clear from the actions of each, that both China and the US are attempting to address perceived inequities and accepted principles or practices which disadvantage them,” he added.

Dr Ng noted that both the process and outcome of the Code of Conduct on the South China Sea being negotiated by China and Asean will also shape globalisation.

“A substantive and effective Code of Conduct which addresses key concerns of claimant states as well as that of user states will do much to boost confidence and promote stability.”

Speaking alongside French Minister for the Armed Forces Florence Parly and United Kingdom Secretary of State for Defence Gavin Williamson, Dr Ng noted that other regional powers “exert considerable influence either individually or as a collective voice for temperance and reason”.

 “The US-China relationship is the most important bilateral relationship for the Asia-Pacific, but the state of relations among Northeast Asian states is also of critical importance for stability,” he said.

While the US-North Korea summit scheduled to take place on June 12 is crucial, the relationship between China, Japan and South Korea will need to be developed beyond that of the North Korea issue to address historical animosities, he added.

“North-east Asia is critical component of the stability of Asia,” he told reporters later on Sunday afternoon in an interview.

“Just by sheer economic or military heft, the relations between these three countries will affect Asia- when I mean Asia, I mean greater Asia as well, Australasia included.”

Asked about China’s role in improving the security of Asia Pacific, he said Beijing has a “critical” part to play given the size of its economy and military and the importance of its ties with the US.

He noted that the disagreements between the two powers are well documented and the important issue is to look to how to resolve them and move forward.

While countries agree on a rules-based order, questions remain over what happens when the rules are not completely followed, or when new rules appear, how are differences resolved, added Dr Ng.

“And those are questions that not only China and US must contend with but all of us because it will affect us all.”