Geopolitical Context:
Amidst global tensions, the US and China held a virtual meeting, signaling a potential truce. The two countries have profound differences in their mindsets and approaches to global issues.

U.S. Perspective:
America views China as a challenger and a serious threat to its strategic balance and moral values. The US sees China’s emergence as a threat to its global dominance and economic interests.

China’s Perspective:
China perceives America’s attempts to slow down its growth and hinder its rise to global prominence. China believes it deserves its rightful place in the international arena and seeks to assert its influence.

U.S.-China Relations:
China’s rise and America’s perceived decline contribute to the complex dynamic between the two nations. The US withdrawal from the TPP (now known as CPTPP) has created challenges for regional economic cooperation.

Resurrecting the TPP:
The TPP was a substantial project aimed at deepening US engagement with Asia. Domestic political hurdles in the US prevented its ratification and implementation. The Biden administration seeks alternative approaches for substantive engagement with the region.

Alternative Engagement Strategies:
The US is exploring cooperation in areas like digital, green, and human resource development. Singapore proposes a digital economy agreement with the US and APEC countries.

China’s and Taiwan’s CPTPP Membership:
CPTPP membership is open to countries that meet its high standards and spirit. China initially showed interest in joining the TPP but later pulled out. The US withdrawal from the TPP complicates China’s potential membership. CPTPP decisions are made by consensus, considering political, strategic, and bilateral factors.

Long-Term Cooperation:
Despite tensions, trade and cooperation between countries are still seen as beneficial in the long term. Balancing economic and geopolitical concerns is crucial for fostering sustainable international relationships.

China’s Multilateralism:
China’s recent emphasis on multilateralism, as exemplified by Wang Shishan’s speech, marks a shift in its foreign policy approach. China’s desire to join and lead international organizations reflects its ambition to increase its influence and shape global rules.

Challenges of Multilateralism with a Major Power:
The presence of a major power like China in multilateral organizations can pose challenges to the principle of equality among members. China’s size and power may overshadow other members, potentially leading to a lack of true multilateralism.

Balancing Power and Self-Awareness:
China needs to develop self-awareness and recognize the importance of engaging with other members on an equal footing. China’s continued influence and acceptance in the international community depend on its ability to operate without resorting to brute force.

Comparison with Other Big Powers:
While no big power treats all others as completely equal, some do a better job of it than others, displaying more politeness and consideration.

US Role in Asia Pacific:
America has maintained a positive presence in the Asia Pacific region for decades. To maintain its influence, the US should continue investing, trading, and cultivating relationships in the region.

Biden’s Approach to China:
President Biden should prioritize trade and diplomatic engagement with China. He should also strengthen relationships with other allies in the region. Biden’s goal is to ensure that the US remains a key player in the Asia Pacific region beyond his presidency.

Taiwan Situation:
Tensions between China and Taiwan are rising due to increased US engagement with Taiwan and China’s military maneuvers. Both sides are expressing commitment to the status quo, but there is a risk of miscalculation or mishap. China may prefer to maintain stability and allow the situation to evolve gradually, rather than taking immediate action.

Hong Kong’s Future:
China has tightened restrictions in Hong Kong after facing difficulties in maintaining the “one country, two systems” model. Singapore has benefited from Hong Kong’s struggles, but it prefers a prosperous and cooperative relationship with Hong Kong.

Singapore’s Vaccination Strategy:
Singapore aimed to achieve herd immunity through vaccination, but the Delta variant has led to infections among vaccinated individuals. The government is gradually easing restrictions as the population becomes more vaccinated, but it is proceeding cautiously to avoid large outbreaks. Singapore’s goal is to avoid sudden U-turns and minimize disruptions to the population.

Communication Challenges:
Governments worldwide face the challenge of communicating clear messages about COVID-19 while adapting to changing scientific knowledge and circumstances.

The Duty of a Leader in a Pandemic:
Leaders must prioritize doing what they judge to be right and necessary, even if it means making unpopular decisions. Consult public health experts, consider the balance of healthcare, economy, and social cohesion, and make decisions accordingly. Stand firm and see the country through, despite opinion polls or criticism.

Adapting to Changing Circumstances:
Leaders must be flexible and adapt to changing circumstances, such as evolving scientific knowledge and public sentiment. Shifting from a strict containment strategy to a more targeted approach that focuses on protecting the vulnerable. Balancing the desire to open up and resume economic activity with the need to protect public health.

The Human Cost of Utilitarian Calculations:
Leaders must consider the human cost of policies that prioritize economic recovery over the well-being of vulnerable individuals. The trauma and suffering caused by overwhelmed healthcare systems and the loss of loved ones cannot be easily dismissed. Societies must find ways to protect the vulnerable without resorting to draconian measures that result in widespread suffering.

China as an Outlier:
China has pursued a strict containment strategy that has largely eliminated domestic transmission of COVID-19. Other countries, such as Singapore, Australia, and New Zealand, initially adopted similar strategies but have since shifted to more targeted approaches. The long-term sustainability of China’s approach is uncertain, especially given the global nature of the pandemic.

China’s Zero-COVID Policy and Domestic Tourism:
China’s strict lockdown measures have been effective in controlling COVID-19 cases, allowing for domestic tourism to sustain its economy, unlike Singapore, which relies heavily on international travel and trade.

Singapore’s Shift in COVID-19 Strategy:
Singapore has shifted its COVID-19 strategy from zero-tolerance to accepting a certain level of cases to avoid economic stagnation.

Balancing Public Health and Economic Recovery:
Singapore’s leaders have had to persuade the population to accept a higher number of daily cases while ensuring the healthcare system can manage the situation.

Trust in Leadership:
Public trust in the government’s leadership is crucial in maintaining compliance with COVID-19 measures.

Succession Planning:
Singapore’s Prime Minister has placed potential successors in key positions to assess their performance and build a strong leadership team for the future.

Inflation Concerns:
Singapore is facing rising inflation, which has been close to zero for several years.

Central Banks’ Response:
Central banks aim to raise inflation to around 2% to enable conventional monetary policy and stimulate economic growth.

Uncertainty in Economic Forecast:
The Prime Minister acknowledges the difficulty in predicting the economic impact of inflation in Singapore.

Carbon Tax as the Best Approach to Address Global Warming:
Economists, business leaders, and many experts agree that taxing carbon is the most effective way to tackle global warming. This approach discourages carbon emissions in a similar manner to how taxes are used to discourage unhealthy behaviors like smoking and alcohol consumption.

Singapore’s Carbon Tax Implementation:
Singapore has implemented a carbon tax across the board, applying it to major emissions sources. The tax is applied to manufacturing factories, electricity-generating plants, and even natural gas-powered plants. The carbon tax is also incorporated into electricity tariffs. For petrol and diesel, an existing excise duty is treated as part of the carbon tax due to its substantial rate.

Significance of Carbon Tax in Driving Change:
The carbon tax is essential for incentivizing changes in behavior, usage patterns, and even industry structures over the long term. A significantly higher carbon tax rate is necessary to achieve Singapore’s carbon targets, which aim for a peak in emissions by 2030 followed by a significant reduction by 2050. Establishing a carbon cap requires a substantial tax rate to be effective.

Carbon Pricing and Allocation:
Carbon pricing is essential for reducing emissions, but the current price of $5 is insufficient and needs to be reviewed. The revenue from carbon taxes should be returned to consumers directly to demonstrate transparency and fairness.

Singapore’s Water Pricing and Conservation:
Singapore charges a high price for water to reflect its scarcity and strategic importance. To offset the cost, the government provides consumers with a “you save voucher” that essentially acts as cash. This approach has been successful in encouraging conservation without subsidizing consumption.

Potential Backlash Against Green Policies:
There is a risk of backlash against green policies similar to the one seen against globalization. People may be willing to save the planet but may resist personal implications such as higher energy costs or job losses.

Wealth Tax as Part of a Comprehensive Revenue System:
A wealth tax can be an element in a comprehensive revenue system, complementing taxes on consumption, income, and sins. Property taxes are a known and refined form of wealth tax, but taxing wealth in other forms is challenging. Capital gains taxes have been tried but have some drawbacks.

Assessing Wealth Taxation:
Wealth taxation, a progressive form of direct taxation based on an individual’s wealth, poses implementation challenges. While income inequality is easier to measure, wealth inequality is more complex and elusive. Governments aim to ensure each generation starts from a relatively equal starting point.

Addressing Wealth Disparities:
Equalizing opportunities is a goal, but creating an identical starting point for all is impossible. Government support schemes should favor those with lesser means.

The Global Minimum Effective Tax:
Efforts to establish a global minimum effective tax rate for companies aim to prevent shell games and equalize the playing field for governments. However, competition among governments to attract projects will persist.

Wealth Taxes and Their Challenges:
Wealth taxes may face similar challenges as France experienced when it raised taxes, leading to wealthy individuals relocating to countries with lower tax rates. The example of Marianne, a symbol of France, highlights this issue.

Geopolitical Outlook:
The global economy will persist, but geopolitical tensions will create toll gates and customs checks, hindering free trade. The interdependence of nations prevents complete separation and necessitates cooperation.

Remote Working:
Remote working has gained traction due to the COVID-19 pandemic, and some companies have adopted a hybrid approach. However, face-to-face interactions are still crucial for building camaraderie and a sense of teamwork. Remote working may not foster a cohesive team culture.

Future Aspirations:
The speaker expresses a desire to no longer hold the current position in 10 years.