Only after the establishment of diplomatic relation with China in 1990, did Singapore made a bold move in encouraging ethnic Chinese businesses to invest in China, especially after 1993 when regionalization initiative was officially launched. The official argument for such a move is that the decision to invest in China is based purely on economic ground. The use of cultural affinity and ethnic advantage is instrumental for pursuing Singapore’s national interest. Despite the re-engagement of Chineseness, Singapore is still very cautious in its endeavor and finds ways to re-balance its act whenever opportunities arise.