Xi promotes Chinese investment in Malaysia on trip to boost ties

Xi promotes Chinese investment in Malaysia on trip to boost ties

Chinese President Xi Jinping's regional tour underscores the tough spot Southeast Asian nations are in.

His Majesty Yang di-Pertuan Agong Sultan Ibrahim has greeted Chinese President Xi Jinping at an official welcoming ceremony at the national palace. (EPA Images pic)
KUALA LUMPUR:
President Xi Jinping said he encourages Chinese companies to invest and start businesses in Malaysia, as part of his push to deepen ties in Southeast Asia to counter mounting pressure from the US.

The Chinese leader met with Malaysia’s king, Yang di-Pertuan Agong Sultan Ibrahim, today, saying Beijing welcomes more Malaysian agricultural goods and called for both countries to advance major projects like the East Coast Rail Link, according to the official Xinhua News Agency.

He also highlighted the importance of strengthening cooperation in areas such as artificial intelligence, the digital economy and green development.

Xi’s visit to Malaysia marks his second stop in the region as Beijing seeks to bolster ties with export-reliant Southeast 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% tariff and secure some export exemptions.

Sultan Ibrahim said he believes Malaysia and China will continue to strengthen 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.

Xi landed in Malaysia late yesterday after concluding a two-day visit to Vietnam and was greeted by Prime Minister Anwar Ibrahim.

Ahead of his arrival, the Chinese leader said he sees his trip as an opportunity to further deepen bilateral ties and strengthen political mutual trust.

Xi will make a final stop in Cambodia from Thursday.

His regional tour underscores the tough spot Southeast 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 tariffs.

Malaysia counts both China and the US among its largest trading partners, and has maintained open ties with both countries.

However, as a trade-dependent nation, it’s feeling the heat. The government is reviewing its growth forecast for the year due to the escalating trade war.

Xi’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.

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