China has strong fundamentals and should remain a focus for businesses, Singapore trade minister says

Businesses should continue to focus on China and explore opportunities to expand their presence in the world's second-largest economy, Singapore Minister for Trade and Industry Gan Kim Yong said Friday.

China had briefly entered deflation territory late last year, and is still struggling with a debt-laden real estate sector.

Ratings agency Fitch cut its outlook on China's sovereign credit rating to negative on Wednesday, following a similar move by Moody's in December.

Fitch citied risks to public finances as the economy faces increasing uncertainty in its shift to new growth models.

However, "if you take a deeper look, when I engaged the businesses and the people on the ground, I think the sense it gives me is that China's fundamentals are strong," Gan said on CNBC's "Squawk Box Asia."

He pointed that China has a huge domestic market, as well as a highly educated and competitive workforce.

The country's investments in infrastructure will also put it in a good position to recover in the longer term, Gan added.

"So I think in the meantime, in the immediate future, they will see headwinds, but I think in the longer term, the fundamentals remain strong."

When asked about Singapore's relationship with the U.S. in light of tensions with China and the prospect of a second term for Donald Trump, Gan said that Singapore "will always work with whoever's in the White House," reiterating a point made by Singapore Prime Minister Lee Hsien Loong earlier in March.

Gan noted that Singapore and the U.S. have a "very long standing relationship," underpinned by the U.S.-Singapore free trade agreement.

The FTA in 2004 with Singapore was the U.S.' first with a country in Asia Pacific, and the only such deal with an ASEAN country.

Gan said that