Tariff War: China, Malaysia Sign Deals During Xi Jinping’s Visit

Malaysia and China have signed numerous agreements to deepen cooperation between the two countries during Chinese President Xi Jinping’s recent visit to Malaysia, amid Beijing’s trade war with Washington, DC.

Malaysia was the second stop on Xi Jinping’s three-nation tour of Southeast Asia, which also included Vietnam and Cambodia. During the three-day State visit to Malaysia at the invitation of the King Sultan Ibrahim, Xi touted a “new golden era” of Chinese-Malaysian relations, following the 50th anniversary of diplomatic ties last year. The king announced new cooperation between the countries in various fields, including artificial intelligence.

Malaysian Communication Minister Fahmi Fadzil stated that a total of 31 MoUs (memoranda of understanding) were signed by the two leaders during the visit, which he termed “among the most significant achievements in our history,” according to Bernama news agency.

A joint statement released at the end of Xi’s State visit stated that both sides agreed to build a high-level strategic China-Malaysia community with a shared future to accelerate their modernisation efforts and jointly promote regional and global prosperity and stability.

They also reaffirmed their commitment to enhancing cooperation under the United Nations, the World Trade Organisation, the World Health Organisation, and BRICS.

Xi met with Malaysian Prime Minister Anwar Ibrahim in Putrajaya on Wednesday, and the talks covered bilateral relations and the current economic landscape, according to Malaysian Foreign Minister Mohamad Hasan, as reported by the Bernama news agency.

With China being Malaysia’s main trading partner, he said that discussions looked at ways to “further enhance bilateral trade,” the news outlet cited Hasan as saying. The discussions were the issue of security in the South China Sea as well. Both China and Malaysia have staked claims over the South China Sea.

Malaysia is the current chair of the Association of Southeast Asian Nations, whose members are among the most heavily impacted by the US’s new tariffs.

The Trump administration imposed tariffs of 24 per cent on Malaysia. The tariffs have been, however, paused for 90 days.

According to the Chinese news agency Xinhua, in 2024, China-Malaysia trade reached USD 212 billion, nearly 1,000 times the level at the inception of diplomatic relations between the two countries. China has been Malaysia’s largest trading partner for 16 consecutive years.

Meanwhile, Chinese President Xi departed Malaysia for Cambodia on Thursday. Xi said he hopes his visit to Cambodia will spearhead progress in building a China-Cambodia community with a shared future.

In an article published in several Cambodian media outlets ahead of his arrival in the country, Cambodia for a State visit, Xi noted that a China-Cambodia community with a shared future is powered by equality and mutual benefit.

For many years, China has been Cambodia’s largest trading partner and the largest source of investment. The industrial and supply chain cooperation between the two countries has continued to deepen, Xi said, as cited in a report by Chinese state media Global Times. (ANI)