There is a growing trend of Chinese companies utilizing third-party countries, especially Singapore, to circumvent geopolitical tensions and trade barriers. This strategy, known as “Singapore-washing,” involves Chinese businesses incorporating in neutral nations to mitigate scrutiny and reduce the risks associated with operating in or from China. One such example is the Yuxiao Fund, a Chinese company seeking to acquire Australian mineral assets, which deliberately set up its operations in Singapore to avoid the suspicion that would accompany a direct bid from China. The article highlights how Chinese firms are increasingly turning to countries like Singapore, Vietnam, and Ireland to access global markets, circumventing tariffs, and minimizing national security concerns in the West.

As geopolitical rivalry intensifies, Chinese companies are becoming more adept at navigating trade barriers through strategic relocation and rebranding. Singapore has emerged as a key location for Chinese businesses looking to mitigate scrutiny and maintain access to Western markets. This trend, however, is drawing increasing attention from Western powers, concerned about the growing influence of Chinese businesses in these “connector” countries. The article also discusses the broader implications of this shift in global trade dynamics, with countries like Hungary, Mexico, and Ireland also serving as key hubs for Chinese investments. Despite the benefits for Chinese companies, these actions are raising concerns about political loyalty and the potential for economic fragmentation.