Analysis-As global scrutiny grows, Chinese firms look to call Singapore home

Core Viewpoint - A growing number of Chinese companies are relocating to Singapore to mitigate risks associated with Sino-U.S. geopolitical tensions [1] Group 1: Trends and Motivations - The trend, referred to as "Singapore washing," has gained momentum since the end of U.S. President Donald Trump's first term and is expanding across various sectors including critical minerals, technology, and biotechnology [2] - Interest from Chinese firms in Singapore is reportedly very strong, with inquiries increasing by approximately 15-20% year-on-year [3] Group 2: Company Examples - Notable companies that have established a presence in Singapore include Terahop, a maker of optical products, and newer entrants like DayOne, Manus AI, and ChemLex, which are involved in data centers, artificial intelligence, and chemical synthesis respectively [4][5] - Companies like Manus AI and Terahop do not publicly acknowledge their Chinese backers, indicating a strategic positioning as Singaporean firms [4] Group 3: Strategic Advantages of Singapore - Singapore serves as an attractive base for companies aiming to navigate U.S. tariffs, which are only 10% on goods from Singapore, while maintaining access to restricted American technologies [6] - The city-state's reputation for neutrality and cultural adaptability makes it appealing for Chinese firms and their expatriates [6] - With 28 free trade agreements, Singapore is positioned as a strategic hub for companies looking to expand into markets outside of China [6]