Samirul Ariff Othman, a senior consultant with Global Asia Consulting, said China is likely to push for renewed investments in infrastructure, digital connectivity, logistics, and green energy under its Belt and Road Initiative during Xi’s visit.
“The visit could also signal an expansion of Chinese-backed industrial parks or mega projects in Malaysia,” he told FMT.
Samirul said China may seek partnerships in Malaysia’s thriving electrical and electronics sector to circumvent US tech restrictions, especially in semiconductors, where Malaysia plays a key role in global supply chains.
“They may also reinforce soft power through cultural diplomacy, scholarships and tourism,” he added.
Xi’s visit is on the heels of an escalating trade war between the US and China. Donald Trump’s administration has imposed a 145% tariff on Chinese imports, citing concerns over unfair trade practices, while China retaliated with a 125% levy, intensifying global economic tensions.
Malaysia, major trade partners of both the US and China, has been hit with a 24% “reciprocal” tariff by Washington, which has since been suspended for three months.
For Malaysia, Xi’s visit may mean expanded trade, more foreign direct investment (FDI), and increased access to China’s consumer markets.
“Co-financing of major infrastructure and clean energy projects could also be on the table,” Samirul said.
Sunway University economics professor Yeah Kim Leng said Putrajaya will likely pursue more extensive regional trade integration with China as part of its broader goal of diversifying trade partnerships.
“This is in line with our aim to expand trade ties with all nations, including China, a major global player,” he said.
Risks and red lines
Samirul warned of several pitfalls Malaysia must avoid from China. The first would be debt dependence, followed by cybersecurity issues.
He said any new BRI projects must be fully transparent to avoid the debt risks seen in other countries.
“Scrutiny over Chinese investments in digital infrastructure, particularly 5G, cloud computing and cybersecurity is also essential,” he said.
He said Putrajaya also needs to avoid too much warmth towards Beijing, which may be interpreted by Washington as Malaysia drifting into China’s favour, potentially affecting US trade, tech collaboration and defence ties.
Samirul said the US is watching closely and a high-profile visit or significant MoUs signed may raise alarm bells, especially among US, Indo-Pacific and trade officials.
He said given Malaysia’s past ambiguity over Huawei, its role in the BRI and Regional Comprehensive Economic Partnership (RCEP) trade pact, as well as a RM72 billion trade surplus with the US, any sign of a shift could impact bilateral cooperation, particularly in tech, defence and trade.
“How Malaysia balances this visit, through language, media coverage, and follow-up actions will determine if the US sees it as hedging or drifting,” he said, adding that the National Geoeconomic Command Centre (NGCC) should take the lead in coordinating risk assessments and strategic messaging during the visit.
Foreign affairs analyst Collins Chong said Xi’s visit to Malaysia is not just about bilateral ties but part of China’s wider bid to project power in Southeast Asia, deepen trade links through RCEP, and promote its own regional security framework, the Global Security Initiative.
“The visit symbolises China’s grip on regional economy and security,” he said.
Chong warned that embracing China-led frameworks too eagerly, whether BRICS, RCEP or the GSI, could put Malaysia in the crosshairs of Washington on the issue of trade and tech, and risk further tariff retaliation.