Singapore New Chinese Tech Hub Amid US Trade Tensions
Singapore is tipped to become the new tech hub for Chinese giants, as Tencent, Alibaba and others flock to the region in a bid to navigate growing trade tensions between the US and China.
Reported by BBC, many of China’s largest tech companies are expanding operations into Singapore, with TikTok owner ByteDance said to be investing billions of dollars.
The news comes as tensions between the US and Chinese government intensifies, impairing the commercial opportunities of Chinese tech giants over cybersecurity links to the communist party.
Commentators claim the expansion reflects Singapore’s ‘neutral’ status between both America and China, with Chinese tech companies leveraging this status for new management hubs.
This week, Tencent announced it was expanding its business presence in Singapore, with the regional office a “strategic addition” to its existing South East Asia offices.
It comes as TikTok navigates its proposed sale to Oracle, following bans by the Trump administration. Huawei’s phone business has been negatively impacted by its mandatory split from Google’s Android, whilst Tencent-owned messaging app, WeChat, is also facing potential bans in the United States.
Commentators assert many of Singapore’s legislative rules could also aid Chinese companies to navigate US trade restrictions – avoiding the appearance of ‘Chinese investment’ by etching locations in the region.