PM Wong says US & China in 'mutually assured disruption' dynamic, both worse off when restrictions imposed & other reacts

Relations between the U.S. and China could be seen as "mutually assured disruption", a dynamic similar to the U.S. and USSR's "mutually assured destruction" during the Cold War, said Prime Minister and Minister for Finance Lawrence Wong.

PM Wong made these remarks during a dialogue session on Jun. 8 at the Singapore Press Club Eminent Speaker Series 2026.

He said that in the U.S.-China relationship, "any attempt by one side to impose restrictions on the other will trigger a response from the other side, and in the end, both parties will be worse off."

PM Wong added: "So, we hope that provides a stabilising factor in bilateral ties and an incentive for both sides to manage their differences well."

'Does not mean that all the problems are resolved'

PM Wong said that while it was good that U.S. President Donald Trump and Chinese President Xi Jinping met for the summit, "it does not mean that all the problems are resolved".

The two met during U.S. President Donald Trump's state visit to Beijing, China, from May 14 to 15, 2026.

PM Wong said, "But increasingly, both sides, I feel, will have to recognise that they have to coexist with one another. The two economies are just too deeply intertwined."

PM Wong added that there will be competition, but hopefully it will not escalate into outright confrontation or conflict.

"It is in the interest of both America and China to maintain this strategic framework, and to have that stability in their relationship. It is also in the interest of countries everywhere in the world."

Southeast Asian nations want both powers engaged

PM Wong said that Southeast Asian nations prefer an arrangement that is more open and inclusive, engaging all the major players, whether "it is America, or China, or Europe".

He said that the Association of Southeast Asian Nations (Asean) "has always wanted a region that is open, that is inclusive, where we engage all the major partners, whether it is the U.S., China, or, for that matter, other major powers like Europe and others, or even emerging groups like GCC."

He noted, "From Asia's point of view, we also do not want to see a world that is divided into competing spheres of influence".

He said that such an arrangement and configuration will be unstable and lead to more competition, rivalry and may lead to conflict.

PM Wong said, "We are in the midst of perhaps the most important transition in the global order since the end of the Cold War".

'Not all poles are the same'

PM Wong said that geopolitical power will continue to become more distributed as the world moves to become more multipolar in nature, but noted that "not all poles are the same".

He noted, "The U.S. remains a dominant power for the foreseeable future. China has risen to be a peer competitor to America."

PM Wong added that Europe remains a major force, India is rising rapidly, and middle powers are becoming more active both individually and in groups.

He addressed comments that America is on the decline and said the prediction has resurfaced multiple times, but that America has defied the odds.

"There are some who think that America is on the decline and it is going to withdraw, and it will just pull back into its own hemisphere. We do not think that is happening."

PM Wong said, "I was a student in America when all they said was, Japan is going to take over the world. It has not happened. And time and again, America has defied the odds, and it continues to be a dynamic and very innovative economy."

PM Wong added that China is "also a very important player and very key partner to all countries in Southeast Asia".

Singapore will be the Asean Chair next year, coinciding with the 11-member bloc's 60th anniversary.

'We want to be friends with everyone'

PM Wong was asked about Foreign Affairs Minister Vivian Balakrishnan’s recent visit to North Korea and said it was due to a standing invitation as part of an anniversary milestone.

Singapore and North Korea celebrated their 50th anniversary of diplomatic ties in 2025.

PM Wong said, "Our approach is quite simple. We want to be friends with everyone. We do not need to have enemies."

"Does not mean we agree with everything they do. We do not, but that should not stop us from having open lines of engagement and continuing to have friendship and continuing to have engagement with them."

He noted that North Korea views Singapore as a trusted country and that they appreciate the relationship and engagement between both sides.

PM Wong added, "That is one major reason why they agreed to have the summit here in Singapore between America and the DPRK."

PM Wong was referring to the historic 2018 Trump-Kim summit held in Singapore.

PM Wong said: "That's our approach in foreign policy: We have a position, we articulate our national interests, but we continue to be friends with as many countries as possible. It's always better to have more friends than fewer, right?"