More Chinese tech might park operations in Singapore if US data security tensions escalate

Published Fri, Aug 7, 2020 · 09:50 PM

Singapore

SINGAPORE may be an intuitive alternative for Chinese companies to park their ex-China operations as the US clamps down on Chinese tech. Through a bifurcated structure, firms can move business operations to another country, while having another unit in China to support its mainland operations.

"Singapore has the potential to attract many Chinese companies if they were to move in the mid to long-term. Not only is Singapore in the same time zone as China, it also has a workforce that can speak mandarin as well as great political stability and transparency which gives businesses peace of mind," said Joel Shen, a tech lawyer who advises tech companies on market entry.

Increasing pressure on Chinese tech has led these firms to look for ways to ring fence their operations to serve the lucrative US market, and experts say Singapore could be the next best option. Many Chinese tech firms have already set up shop in the city-state known for its business-friendly regulations, intellectual property protection a…