Facing the challenge of rising China: Singapore's responses

Singapore economy stumbled after the outbreak of 1997 Asian financial crisis. Competition is largely from globalization and the rising of Chinese economy, which hit the region in two-fold by taking away much of the share of export market and FDI. Recent development however shows a good signal for Singapore's exports to China's market. This paper examines the trade and investment relationship between Singapore and China, and reviews the policies that Singapore had taken to cope with the changing world. The strategy of moving toward a knowledge-based economy becomes Singapore's must choice. However, the smooth engagement in the transition with developed economy and the dynamic Chinese economy could be a challenge to Singapore.