Singapore's Deputy Prime Minister Lee Hsien Loong on Thursday voiced his optimism about China's economic growth, saying that China's growth and transformation have been phenomenal.

Speaking at a conference on Asian economies and financial markets Thursday, Lee said that a major development in recent years is the emergence of China as an economic powerhouse.

He said that China's buoyant exports, supported by low-cost manufacturing capabilities, and its huge domestic market have created strong competition as well as immense opportunities for the rest of the world.

"China's growth has driven the rapid increase in intra-regional trade, and fueled economic expansion in the region, if not worldwide," said Lee.

As for the decision made by China to cool its economy recently, Lee said that China's economy is showing signs of overheating, but the Chinese government is mindful of the danger and determined to act decisively to rein in credit and investment.

Lee stressed that this gives the Chinese a good chance of achieving a soft landing, and beyond this cyclical issue, China is set to continue growing strongly for the next decade or two.

He also mentioned that good US-China relations will calm all ofAsia.

"US-China relations are the most important bilateral relationship in Asia and soon, perhaps in the world," he said, adding that "the complexity and multi-dimensional nature of US-China relations requires both sides to balance and reconcile different perspectives to achieve equilibrium."

With regard to the Taiwan issue, Lee said that no Chinese leadership can ever tolerate a bid for independence by Taiwan. If Taiwan pushes too far, the Chinese must react.