Singapore is hosting the Asean and East Asia Summits, and it seems like half the world is invited.

Famous names like President Vladimir Putin of Russia, Prime Minister Mahathir Mohamad of Malaysia and Vice-President Mike Pence of the USA will all turn up on our doorstep.

And some show up with "gifts", like Premier Li Keqiang of China.

Premier Li's first official visit

Li arrived on Nov. 12 for a five-day visit. It was his first official visit to Singapore as China's Premier.

Prime Minister Lee Hsien Loong noted in a Facebook post that it coincided with the 40th anniversary of former Chinese Paramount Leader Deng Xiaoping's historic visit to Singapore.

Said PM Lee:

"China and Singapore have a long-standing relationship, built up by generations of leaders from both sides. China has been our largest trading partner since 2013, and our largest foreign investment destination.

In turn, we are China’s largest foreign investor since 2013 and China is our largest tourist source."

Upgraded Free Trade Agreement

The two leaders met at the Istana, and witnessed the signing of an upgraded Free Trade Agreement (FTA) between China and Singapore, along with ten other memorandums of understanding (MOU).

The upgraded FTA was concluded after negotiations on Nov. 5, following a meeting between Minister of Trade and Industry Chan Chun Sing and Vice Minister of Commerce and China International Trade Representative Fu Ziying in Shanghai, China.

According to The Straits Times, the upgraded FTA grants the following:

• Singapore businesses will have preferential treatment for exports of certain petrochemical products into China.
• Singapore businesses will have greater access to China's maritime, construction services and legal sectors.
• Trade regulations, such as investment protection, customs procedures and trade remedial measures will be improved.
• Singapore and China will cooperate in new areas, such as the environment and in e-commerce.

More opportunities for both sides

As a result of the FTA, Singapore shipping and ship management companies can now form majority or wholly-owned foreign enterprises in the free trade zones (FTZ) of China’s major port cities of Shanghai, Guangdong, Tianjin and Fujian.

Singapore law firms in Shanghai's FTZ can partner up with Chinese law firms to offer legal services to clients anywhere in China.

Singapore construction companies in the various FTZs and industrial parks of Suzhou, Shanghai, Tianjin and Chongqing can now undertake joint-building projects anywhere within those cities.

On Singapore's side, we will allow Chinese companies to deliver parcels and documents in Singapore while providing waste management services.

One additional Chinese bank will also be allowed to conduct a full range of banking businesses in Singapore.

Closer links

A number of significant MOUs were also signed.

The MOU on the Southern Transport Corridor will rename it the New International Land-Sea Trade Corridor (ILSTC), which better reflects the two-way flow of trade.

This is a project aimed at linking Western China and Southeast Asia through rail and sea, and it will be jointly developed by Singapore and China.

Said Minister Chan:

"The signing of this MOU marks a significant milestone for the Chongqing Connectivity Initiative.

It demonstrates the strong commitment by both governments to develop the CCI-ILSTC into a multimodal and multifaceted economic link that catalyses conventional trade connectivity and new dimensions of connectivity like finance and professional services in China’s western region and Southeast Asia, resulting in greater integration of both regions."

Another MOU is the elevation of the China-Singapore Guangzhou Knowledge City into a state-level project, which will make it more important for both governments.

Other MOUs signed related to cooperation in the cultural, environmental and financial tech sectors, collaboration on urban governance, planning and management and faster cargo clearance.

According to Channel NewsAsia, Premier Li said during his speech:

"We share many common beliefs. We both want to safeguard multilateralism and free trade, we also want to safeguard peace and stability in the South China Sea.

China, I have to emphasise once again, is still a developing country. There’s still a long way to go for China to realise modernisation. China will continue to unswervingly press ahead with reform and opening up, this is the only way for China to realise modernisation.

We welcome you, our friends from Singapore, to participate in our progress, we will together attain win-win, and benefit China and Asean, as well as the region and the world."

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Top image from PM Lee Hsien Loong's Facebook page.