As China's modernization drive gained momentum in the late 1980s, many Chinese delegations visited Singapore,  a southeast Asian nation that achieved economic miracle within 30 years of independence. The Chinese visitors were eager to learn modern management methods, while Singapore was also planning Economic Regionalization, which focused on overseas investment.  

In 1992, the idea of developing a modern industrial township with Singapore experience was broached. During his tour of southern China that year, China's late paramount leader Deng Xiaoping said: "Singapore enjoys good social order and is well managed. They should tap on their experience, and learn how to manage better than them."

After rounds of discussions and site surveys, both governments decided to join hands in developing a modern industrial park in the east of Suzhou. The China-Singapore Suzhou Industrial Park (CS-SIP) was thus born on Feb. 26, 1994 when Chinese Vice Premier Li Lanqing and Singapore Senior Minister Lee Kuan Yew signed the Agreement on the Joint Development of Suzhou Industrial Park in Beijing.