China's key focus is on growth, says MM Lee

The Straits Times, April 25, 2007
By Li Xueying


Emotional issues and other disputes brushed aside as Beijing seeks economic progress

CHINA has exercised its 'soft power' with great skill and sophistication and there is a new perception today of what the country stands for, Mr Lee Kuan Yew said yesterday.

As an illustration of what China's main focus was, and how it was being seen by others, Minister Mentor Lee cited Chinese Premier Wen Jiabao's visit to Japan earlier this month.

Clearly aware that Japanese Prime Minister Shinzo Abe is a nationalist who favours an outgoing foreign policy, and despite the 'kerfuffle' over the comfort women issue, Mr Wen spoke to the Japanese parliament in warm, friendly and cooperative terms.

'I think it speaks volumes as to the considerations: that they have to brush aside all these emotional issues and concentrate on the economic,' Mr Lee told media and financial figures at a dialogue organised by media company Reuters.

'They are determined that nothing should prevent the continual growth that they hope to make in the next decade and beyond.'

He went on to remind his audience that only the United States and Japan had protested against China's higher military spending.

No other Asian neighbour did so publicly. That was because they were focused on China as a growing market: 'The Chinese are willing to give me the opportunities to sell into it; they offered us favourable free trade agreements; how do I get more investments into China, and from China?'

This is because the new perception of China is that it stands for growth, economic prosperity, economic cooperation with the region, he said in response to questions at the dialogue.

'So they'll push aside all these quarrels about coral reefs and prospective oil in sand banks and so on. All pushed aside. No more hard talk. It's all 'Let's cooperate, Let's go together',' he pointed out.

For over 45 minutes, Mr Lee responded to queries and gave his views on a wide range of topics from Singapore's economy to the environment. But much of the interest was on the growth of China.

A participant, for instance, said China was not moving towards democracy and asked for a forecast of China in 30 years, and the implications for the region.

Mr Lee said any change in China's internal political structure would come at a manageable pace and that it was unlikely - and 'unwise' - for China to become a Western-style democracy.

As for what the changes taking place in China would mean for the region, he said that economics, aid, trade, investments and diplomacy - not military armaments - were the weapons it was wielding to compete in today's world.

China learnt from the mistakes of the former Soviet Union - which over-spent on military technology and weaponry at the expense of its economy and civilian technology, resulting in its collapse.

By building its economic and diplomatic strength instead, China was effecting 'a new balance of influence' - one that leaders elsewhere are taking into consideration as they made projections for the next two decades.

He cited former US treasury secretary Lawrence Summers who said that if people looked back 300 years from now, what they would remember as great events of this period would not be the Cold War's end or 9/11 or terrorism but China and India's rise.

On India, his assessment was that it would grow at 65 to 75 per cent of China's rate - which was a very considerable rate.

But both were different societies and cultures and they should not be measured by the same yardstick.

Allianz Insurance chief executive Bruce Bowers said Mr Lee had provided a particularly valuable insight for those who saw China and India 'as two elephant economies together. Mr Lee crystallised how they are different and that is helpful as we are active in these two countries'.