Singapore's Prime Minister has warned that economic decoupling between the United States and China could further destabilise the region, while sidestepping questions about the new Australian government's approach to Beijing.
Lee Hsien Loong is in Canberra for annual talks with Prime Minister Anthony Albanese.
The two leaders have signed a Green Economy agreement designed to speed up decarbonisation in both countries, as well as discussing climate change, economic cooperation and the regional response to the ongoing military crackdown in Myanmar.
While Singapore retains strong security ties with the United States, Mr Lee has repeatedly urged both Washington and Beijing to reach a political and economic accommodation, warning that intensifying competition could have damaging economic consequences while increasing the chance of a catastrophic military conflict between the two great powers.
Last week, the Biden Administration unveiled sweeping new export controls designed to stop China from obtaining advanced semiconductor chips made with US equipment.
Administration officials have been increasingly worried about the way Beijing has been harnessing those sophisticated technologies to develop advanced weapons systems and crack encrypted messages sent by the US government.
'National security concerns are real'
Mr Lee didn't directly criticise the move but said that intensifying decoupling between the two great powers was a "worry".
"National security concerns are real. How wide or narrowly they're defined, well, it's a judgement of each government and administration," he said.
"I think the Biden Administration's latest move is a very serious one. I'm sure they've considered it carefully. It can have very wide ramifications; we'll have to see how things works out."
He also warned that it could "trigger off further consequences and may result in less economic cooperation, less interdependency, less trust, and possibly, ultimately, a less stable world".
Mr Lee made headlines last year when he met with then prime minister Scott Morrison in Singapore and appeared to suggest that Australia should take a different tack with Beijing.
But when asked about how Mr Albanese's government was dealing with China, Mr Lee declined to comment.
"We never give ourselves report cards, much less our friends," he said.
"We have our view on how to maintain amicable relations with as many countries as possible while standing up and protecting ourselves from adverse developments overseas.
"I'm sure Australia does that too and I'm sure in the process of diplomacy we share notes with each other, and often we do so in the strictest and utmost confidence and confidentiality."
Green shipping, reducing trade barriers
Both leaders also hailed the green economy agreement as a "trailblazing" pact that could help provide a model for other countries to follow in the race to net zero.
The agreement is designed to intensify cooperation across a host of areas including green shipping, reducing trade barriers to the trade of clean energy and intensifying collaboration in a range of industries including lithium battery recycling and alternative proteins.
Mr Albanese said the agreement "extends well beyond a simple bilateral trade agreement".
"This world-first agreement establishes a framework under which our countries can advance work on the clean energy transformation and support businesses and industry," he said.
"This is a model that will support both Australia and Singapore, and partners in our region to seize the economic opportunities of the global transition to net zero."
