According to foreign media reports on the 19th, an increasing number of Chinese companies are choosing to relocate to Singapore to reduce the risk to their businesses from US-China geopolitical tensions.
Foreign media reported that KG Tan, CEO of Incorp Group, which assists companies in moving or expanding within nine locations in the Asia-Pacific region, stated that interest from Chinese companies in relocating to Singapore is very strong, with related inquiries increasing by about 15% to 20% annually; furthermore, demand has been consistently growing and may accelerate further.
The report stated that among the Chinese enterprises recently relocating to Singapore is data center operator DayOne, which was spun off from GDS Holdings Limited. According to the GDS official website, GDS is a developer and operator of high-performance data centers in China.
Other Chinese firms that have relocated to Singapore include Beijing Butterfly Effect Technology Company, which gained explosive popularity in March this year after launching its AI product Manus and has moved its headquarters to Singapore, as well as ChemLex, an AI-driven chemical synthesis company.
It is worth noting that official websites for products such as Manus AI do not mention their Chinese background. In July this year, DayOne CEO Jamie Khoo stated that the company had always planned to separate from its Chinese parent company, as the two operate under different regulatory systems.
The report said that for Chinese companies seeking to avoid US tariffs and continue to access key US technologies, Singapore is an attractive destination. The US currently imposes only a 10% tariff on goods from Singapore.
Some economists believe that Singapore is highly favored for its internationalization and neutrality, and Chinese enterprises as well as their expatriate workers can easily adapt to local culture.