Malaysia stands with China on trade, Prime Minister Anwar Ibrahim has said as the Southeast Asian nation hosts Chinese President Xi Jinping.
“We stand with the Chinese government, for the well-being of our people and for our national economic interests, as well as the overall development and stability of our country,” Anwar told state-run Chinese broadcaster CGTN on Wednesday.
Xi, who is on a week-long three-nation tour of Southeast Asia, was greeted by a 21-gun salute as he arrived at the national palace on Wednesday morning for an audience with Malaysia’s King Sultan Ibrahim Iskandar, accompanied by Prime Minister Anwar.
Later, the countries are expected to sign deals aimed at opening up more trade for key Malaysian exports such as palm oil and durian, increasing the influx of Chinese tourists and students to Southeast Asia and sharing Chinese know-how in sectors such as renewable energy.
In return, analysts warn that China is likely to expect Malaysia and its Southeast Asian neighbours to back it as the region’s leading power – an alignment that could provoke a reaction from Washington, leading to unpredictable consequences.
Anwar, however, refuted this argument. “We should not and do not need to be constrained by any side. So far, we refuse to succumb to such pressure,” he said.
“Our attitude is that we cooperate with those who treat us well. I must emphasise that although China is a major power with a strong economy and formidable military strength, we have never felt any sense of trouble or pressure from it.”
The visit is timely as Malaysia and its neighbours face having their decades of growth stunted by Donald Trump’s tariffs.
The US president has threatened to impose a blanket 24 per cent tariff on Malaysian exports, affecting everything from electric heaters and lamps to furniture.
Xi’s visit, which was planned months in advance, comes as China assumes the role of the defender of global free trade after Trump’s tariffs threatened to cut access to the US market.
China’s giant economy has become a potential lifeline for Southeast Asian economies now fearing the gut punch of US tariffs.