Singapore’s prime minister-in-waiting Lawrence Wong warned that the U.S. and China may "sleepwalk into conflict” if they don’t engage with each other and de-escalate rising tensions over Taiwan.

In an interview on Monday with Bloomberg Editor-in-Chief John Micklethwait, Wong said the relationship between the world’s biggest economies was on a "very worrying” trajectory in the wake of U.S. House Speaker Nancy Pelosi’s visit to Taiwan and China’s subsequent military drills around the island.

"We are starting to see a series of decisions being taken by both countries that will lead us into more and more dangerous territory,” Wong, now serving as deputy prime minister and finance minister, said at the Finance Ministry office overlooking the central business district.