China's Li Qiang opens Malaysia visit 'ready' to build closer economic, development ties

Chinese Premier Li Qiang hailed the "sound momentum of growth" in China-Malaysia relations over the past five decades, as he embarked on his three-day trip to the Southeast Asian country.

In a statement released on his arrival in Kuala Lumpur on Tuesday evening, Beijing's No 2 official also praised the "consolidated strategic trust" between the two countries, which are celebrating 50 years of diplomatic ties.

"China is ready to work with Malaysia ... to further synergise development strategies, deepen mutually beneficial cooperation, and increase exchanges and mutual learning between civilisations," Li said.

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It is Li's first visit to Malaysia since he took office in March last year, and is part of high-level visits between the two countries as part of the 50th anniversary celebrations.

Beijing has also been forging closer bonds with regional capitals like Kuala Lumpur that have refused to pick a side in the geopolitical rivalry between the US and China, instead signalling a readiness to expand interactions with the world's second-biggest economy.

In an exclusive interview with the South China Morning Post ahead of Li's visit, Malaysian Prime Minister Anwar Ibrahim said it made sense for Malaysia to carry on doing business with China.

Anwar stressed that he had neither any intention of antagonising the US nor of being swayed by the unilateral action of one country against another, saying that it was no longer about neocolonialism or colonial rule. "We are an independent nation," he said.

"If they have compelling evidence to suggest that any company or any country is causing mischief, then all right. They should adduce evidence ... But otherwise, we will not succumb to that sort of pressure."

The Chinese foreign ministry commended Anwar on Monday for his remarks and said China "firmly supports" Malaysia and the other Association of Southeast Asian Nations members in "upholding their national strategic independence".

On Sunday, Chinese news outlet Guancha.cn released an interview with Anwar in which he announced that Malaysia intended to join the Beijing-backed Brics bloc of emerging economies.

"We have made a decision. We are placing the formal procedures soon," Anwar said. Malaysia is the latest of a growing number of countries to join the bloc's original members Brazil, Russia, India, China and South Africa.

Li was personally welcomed by Anwar on Wednesday. His itinerary also includes a meeting with Malaysia's King Ibrahim Iskandar, according to the Malaysian foreign ministry.

Li and Anwar also witnessed the exchange of several cooperation documents, including the export of Malaysian agricultural commodities to China. Other cooperation documents covered areas such as the digital economy, green development, tourism, housing and urban development, higher education, science and technology.

Li will also attend a lunch with representatives of the business community from the two countries during his visit, Malaysia's foreign ministry said.

China's Premier Li Qiang inspects an honour guard during a welcoming ceremony in Malaysia on Wednesday. Photo: AFP alt=China's Premier Li Qiang inspects an honour guard during a welcoming ceremony in Malaysia on Wednesday. Photo: AFP>

Trade between China and Malaysia grew 11.4 per cent in both imports and exports in the first five months of 2024 from the same period a year earlier in US dollar terms, according to Chinese customs data.

China was Malaysia's largest trading partner for the 15th straight year in 2023, while the US retained its spot as the Southeast Asian nation's top investment partner over the same period.

Among the Asean nations, Malaysia is China's second-biggest trading partner and its largest source of imports. Kuala Lumpur will take over the rotating chair of the 10-member Association of Southeast Asian Nations next year.

While in Malaysia, Li will also attend the groundbreaking ceremony for the East Coast Rail Link (ECRL) in the state of Selangor's Gombak district, part of Beijing's massive infrastructure programme, the Belt and Road Initiative.

Malaysian authorities expect the 665km (413 miles) railway to be completed by the end of 2026 and operating from January 2027, forming a major transport artery between the country's east and west coasts.

In his arrival statement on Tuesday evening, Li called on the two countries to take the jubilee celebrations as "a new starting point" to build a "community with a shared future" - a characterisation of the relationship agreed by China and Malaysia last year.

Chinese Premier Li Qiang (left) greets Malaysian Prime Minister Anwar Ibrahim before their meeting in Putrajaya on Wednesday. Photo: AFP alt=Chinese Premier Li Qiang (left) greets Malaysian Prime Minister Anwar Ibrahim before their meeting in Putrajaya on Wednesday. Photo: AFP>

Li arrived in Kuala Lumpur on the last leg of a week-long tour which included New Zealand and a four-day visit to Australia, which wrapped up on Tuesday.

While in Australia, Li visited the Perth plant of Chinese-controlled Tianqi Lithium, as well as a research hub belonging to the Australian mining company Fortescue, which is also headquartered in the city.

Addressing a round table of Chinese and Australian business representatives in Perth on Tuesday, Li deemed the two countries as "a close community of shared interests" and called for them to work together to create a "competitive" new energy supply chain.

China's technological advantages in new energy vehicles and lithium batteries were complementary to Australia's wealth in key minerals resources, he said.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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