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Given how far growing tensions between mainland China and the West have arisen and how poor the global confidence in the present Chinese economy has plunged, I come up with a conspiracy theory. 

It suggests that Singapore's role as a new financial gateway for mainland China be part of the US containment strategy. The intention would be to drain the Chinese economy by facilitating massive capital outflows, further stifling the possibility of recovery for the world's second-largest economy in a rough patch. Furthermore, this window could not only lure the wealth of individuals but also entice the capital of the Chairman and the members of his inner circle, through Singapore-based companies owned by mainland proxies, seeking investment opportunities as the prospects in mainland China seem less promising. This would provide the West, particularly the US, with increased bargaining power by potentially seizing key people’s accumulated overseas assets in the event of all-out military conflicts.  

More importantly, there is a common view among American political circles that serious disturbances caused by total chaos throughout mainland China or even the sudden collapse of its regime due to the freefall of the economy is not in the interests of the US. On the contrary, the steady decline of the CCP's economic power in global affairs, driven by a set of unsolvable—at least in the near term—political and economic problems, provides the west a time window to promptly shift the pivot of the previous economic imbalance through de-risking and rapid divestment. 

The dilemma of enticing western capital to re-pivot toward China's markets amid economic woes and political repression is a burning issue for the CCP, aiming to reduce the risk of social instability for the regime's survival. Strategic concessions, though, could involve the jettisoning of geopolitical aggressiveness, transparent economic policy, and concrete actions on economic reforms, potentially serving as a quid pro quo.  

Worse yet for the CCP, the decline of its sharp power is happening at a time when the US economy keeps firing on all cylinders. The US is more inclined to take a longer process to tame the paper tiger on full alert by leveraging its political and economic prowess, more than just to kill it at an unpredictable cost. This would align more with the interests of the West. Perhaps this is a major reason why the US has given the green light for Singapore putting in place a mutual visa exemption policy with mainland China.  

Singapore is certainly no substitute for HK in terms of facilitating the CCP’s ambitious agendas, which were flagrantly carried out in HK and the West during the period of fascination with a claw-concealed panda, including economic, industrial, and military espionage, political infiltration, and information warfare. By designating a naturalized Chinese businessman as a politically significant person at the time of granting a visa-free agreement, it can be seen as a warning shot to the CCP, signaling that it should not attempt to play the old trick again.   

It would be naive for the CCP to pin all hopes on an unwavering position of a financial gateway amid the decoupling circumstances. Even under the premise of the CCP’s willingness not to pose any threats to Singapore's national interests, the decision regarding the sustainability of this unique position rests with the US. Choosing Singapore as a viable alternative is more likely a matter of expediency, as no one in the party can find any panacea for reviving the tottering economy within the playbook of great rejuvenation.

▶️ 「華裔」不是「中國人」,不應到中國「落葉歸根」:新加坡李光耀、李顯龍智慧解讀
https://www.youtube.com/watch?v=phlr54UiZwA 

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Eric Yum

The first paragraph says it all “it is a conspiracy theory”!