China Ambassador H.E. Cao Zhongming outlines growth plans, cooperation opportunities, and reassures businesses on Hainan developments.
A fireside chat hosted by the Singapore Manufacturing Federation (SMF) on 23 March 2026 brought together business leaders and policymakers to discuss China’s future development. During the session, H.E. Cao Zhongming shared insights on China’s 15th Five-Year Plan and its implications for global and Singapore-based companies.
Ambassador Cao highlighted China’s strong economic progress, noting that the country’s gross domestic product reached 140 trillion yuan (S$26.1 trillion) in 2025, with GDP per capita rising to US$13,400. He explained that the new Five-Year Plan will focus on technological self-reliance, including sectors such as aerospace and quantum technology, while also boosting domestic consumption.
He emphasised that China’s long-term planning provides stability and predictability for businesses, especially amid global uncertainties such as trade tensions and tariffs. This, he said, creates opportunities for international companies to collaborate and grow alongside Chinese enterprises.
Addressing concerns about the closure of Hainan Island in December 2025, Ambassador Cao reassured participants that the impact on Singapore would be limited. While acknowledging that both Hainan and Singapore are major free trade hubs, he said their roles can complement rather than compete with each other.
He outlined three key benefits for Singapore companies. First, policy advantages in Hainan allow for lower tariffs, including duty-free access for certain goods. Second, new industrial opportunities are emerging in sectors such as medical tourism, aerospace, and education. Third, improved convenience in trade, investment, and movement of people will support stronger business exchanges.
Ambassador Cao also addressed concerns about rising competition from Chinese companies expanding globally. He stressed the importance of healthy competition, which drives innovation and growth, while cautioning against excessive competition that disrupts market balance. He encouraged Chinese firms to respect local rules and contribute positively to host economies.
The session concluded with a strong message of cooperation, with Ambassador Cao encouraging Singapore businesses to explore opportunities in China and strengthen partnerships for mutual growth.
Source: SMF
