China, Malaysia seek deals as Xi deepens South-east Asia ties
Malaysia maintains ties with China and the US, but feels pressure as trade tensions rise
[KUALA LUMPUR] China and Malaysia struck 31 cooperation agreements during Chinese President Xi Jinping’s state visit, part of his push to deepen ties in South-east Asia to counter mounting pressure from the US.
The preliminary agreements ranged from cooperation in artificial intelligence to mutual visa exemptions and global security, as the Chinese leader met Prime Minister Anwar Ibrahim on Wednesday (Apr 16) in Putrajaya. They also sought to boost cooperation in the railway sector and tourism.
Anwar spoke highly of Xi ahead of the documents exchange, saying he exemplified a new type of leadership who had proved his success and was willing to speak on topics “hardly expressed by any modern leader in this world,” namely shared prosperity and civilisation.
“We admire your tenacity, and for that Malaysians welcome you, President Xi, not only as president of a great country, the People’s Republic of China, but as a true friend tested,” said Anwar. “We will work together in various fields of endeavour, in economy, in trade, in investment, of course in the new technology, including AI initiative and all related matters that we have discussed for many years now.”
Xi’s visit to Malaysia marks his second stop in the region as Beijing seeks to bolster ties with export-reliant South-east Asian economies rattled by President Donald Trump’s intensifying trade war. The trip comes as countries are trying to strike their own deals with Washington after Trump hit trading partners with “reciprocal” tariffs, and then announced a 90-day pause. Malaysia, in particular, is looking to lower its 24 per cent tariff and secure some export exemptions.
Xi met with the nation’s king, Sultan Ibrahim Iskandar, earlier on Wednesday, saying Beijing welcomes more Malaysian agricultural goods and called for both countries to advance major projects like the East Coast Rail Link, according to China’s official Xinhua News Agency.
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He also highlighted the importance of strengthening cooperation in areas such as artificial intelligence, the digital economy and green development.
Sultan Ibrahim said he believes Malaysia and China will continue to boost cooperation despite the existence of various “geopolitical gaps” around the world, according to a post on his official Facebook page.
“There is great potential for Chinese companies and investors to explore opportunities here as it is in line with the importance of regional connectivity and high-quality development under China’s ‘Belt and Road’ Initiative,” he said.
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Xi landed in Malaysia late on Tuesday after concluding a two-day visit to Vietnam and was greeted by Anwar. Ahead of his arrival, the Chinese leader said he sees his trip as an opportunity to further deepen bilateral ties and bolster political mutual trust. Xi will make a final stop in Cambodia from Thursday.
His regional tour underscores the tough spot South-east Asian nations are in. Since Trump imposed steep tariffs on China during his first term, many of these countries have become key routes for Chinese exports to reach the US. Now, Washington is pressuring them to cut off that lucrative business channel with their largest trading partner, or face crippling US levies.
“What we are witnessing today is not an honest reckoning with the imperfections of globalisation, but a retreat into economic tribalism,” Anwar said. “Market access is being weaponized. What was once a multilateral covenant for shared growth now buckles under the weight of arbitrary disruption and unilateral whim.”
Malaysia counts both China and the US among its largest trading partners, and has maintained open ties with both countries. But as a trade-dependant nation, it’s feeling the heat. The government is reviewing its growth forecast for the year due to the escalating trade war.
Xi urged efforts to resist supply chain disruptions, Xinhua reported.
The Chinese leader’s last state visit to Malaysia was in 2013, when the two countries upgraded their ties to a Comprehensive Strategic Partnership. Last year, they celebrated the 50th anniversary of the establishment of diplomatic relations, highlighting decades of growing cooperation.
Anwar pledged to remain an “unwavering and principled friend” to China, saying that the country had remained a rational, strong and reliable partner through turbulent times.
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