China's Xi hails ‘new golden era' with Malaysia during trade tour
The diplomatic stop on Wednesday marks the second leg of Xi's three-nation tour, which also includes Vietnam and Cambodia, and comes amid sharp tariffs imposed by the United States that are reshaping the global economic landscape.
Sultan Ibrahim welcomed Xi in a colourful ceremony at the golden-domed Istana Negara palace before his meeting with Malaysian Prime Minister Anwar Ibrahim at the administrative capital of Putrajaya.
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.
'This is a hugely significant visit,' said Al Jazeera's Rob McBride, reporting from Putrajaya. 'It takes place during this unprecedented trade war that is developing with the United States, with both Malaysia and China finding themselves in the middle.'
Khoo Ying Hooi, an associate professor in the department of international and strategic studies at Malaya University, said the visit offered a chance to 'test the waters for regional solidarity' amid the US trade disruptions.
'It's not just about friendship, it's about realigning the regional centre of gravity towards Beijing,' she said.
Malaysia is the current chair of the Association of Southeast Asian Nations (ASEAN) bloc, whose members are among the hardest hit by new US tariffs.
ASEAN member Vietnam, a manufacturing powerhouse, was slapped with 46 percent tariffs, and Cambodia, a significant producer of low-cost clothing for big Western brands, was hit with a 49 percent duty.
Malaysia, Southeast Asia's third-largest economy, was hit with a lower tariff of 24 percent. Though the measures have been paused for 90 days, President Donald Trump has warned that no country is 'off the hook'.
McBride said Malaysia, a longstanding US ally, was likely 'genuinely alarmed to find itself on this list of reciprocal tariffs' and saw it as 'a wake-up call … to deepen ties with its biggest trading partner', China.
Despite robust economic ties, the two countries have had tensions over the South China Sea, where Beijing claims sweeping sovereignty over waters also claimed by Kuala Lumpur.
'There has been an extraordinary sea change here, with a lot of the norms of international trade completely upended in a few short months,' McBride said.
In Asia Pacific generally, he added, countries that usually align with the US economic model are increasingly turning to Beijing as a reliable trade partner.
Xi's next trip will be to Cambodia, one of China's staunchest allies in Southeast Asia and where Beijing has also extended its influence in recent years. On Thursday, he is expected to meet Cambodia's King Norodom Sihamoni as well as the prime minister and head of the senate.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Jazeera
17 minutes ago
- Al Jazeera
In South Korea, Trump's tariff threats place US love affair under strain
Seoul, South Korea – When Sideny Sim had a chance to visit the United States on business several years ago, it was the fulfilment of a lifelong dream. Like many South Koreans, Sim had long admired the US as a cultural juggernaut and positive force in the world. These days, Sim, a 38-year-old engineer living near Seoul, feels no such love towards the country. As US President Donald Trump threatens to impose a 25 percent tariff on South Korea from August 1, Sim cannot help but feel betrayed. 'If they used to be a country that was known to be a leader in culture, the economy and the perception of being 'good,' I feel like the US is now a threat to geopolitical balance,' Sim told Al Jazeera. South Korea and the US share deep and enduring ties. South Korea is one of Washington's closest allies in Asia, hosting about 28,000 US troops as a bulwark against North Korea. The US is home to a larger South Korean diaspora than any other country. But with the return of Trump's 'America First' agenda to Washington, DC, those ties are coming under strain. In a Pew Research Center survey released earlier this month, 61 percent of South Koreans expressed a favourable view of the US, down from 77 percent in 2024. Like dozens of other US trading partners, South Korea is facing severe economic disruption if it cannot reach a trade deal with the Trump administration by the August deadline. The Asian country, which is a major producer of electronics, ships and cars, generates more than 40 percent of its gross domestic product (GDP) from exports. In addition to sending a letter to South Korean President Lee Jae-Myung outlining his tariff threats, Trump earlier this month also claimed that Seoul pays 'very little' to support the presence of US Forces Korea (USFK). Trump's comments reinforced speculation that he could demand that the South Korean government increase its national defence spending or contributions to the costs of the USFK. After Trump last week told reporters that South Korea 'wants to make a deal right now,' Seoul's top trade envoy said that an 'in-principle' agreement was possible by the deadline. With the clock ticking on a deal, the uncertainty created by Trump's trade policies has stirred resentment among many South Koreans. Kim Hyunju, a customer service agent working in Seoul, said that although her company would not be directly affected by the tariffs, Trump's trade salvoes did not seem fair. 'It would only be fair if they are OK with us raising our tariffs to the same level as well,' Kim told Al Jazeera, adding that the Trump administration's actions had caused her to feel animosity towards the US. 'I can't help but see the US as a powerful nation which fulfils its interests with money and sheer power plays,' Kim said. 'I've always thought of the US as a friendly ally that is special to us, especially in terms of national defence. I know it is good for us to maintain this friendly status, but I sort of lost faith when Trump also demanded a larger amount of money for the US military presence in our country.' Kim Chang-chul, an investment strategist in Seoul, expressed a more sanguine view of Trump's trade policies, even while acknowledging the harm they could do to South Korean businesses. 'The US tariff policy is a burden for our government and businesses, but the move really shows the depth of US decision-making and strategy,' Kim told Al Jazeera. 'Trump wants South Korea to be more involved in the US's energy ambitions in Alaska. It's part of the US pushing for geopolitical realignment and economic rebalancing.' Earlier this year, the US held talks with South Korean officials about boosting US exports of liquefied natural gas (LNG) to South Korea, a major LNG importer. Keum Hye-yoon, a researcher at the Korea Institute for International Economic Policy (KIEP), said it has been difficult for a US ally like South Korea to make sense of Trump's comments and actions. 'When Trump cites 'fairness' in his tariff policy, it's based on unilateral expectations of improving the US trade balance or restoring economic strength to certain industries,' Keum told Al Jazeera. 'As allies like South Korea share supply chains with the US and work closely with its companies, disregarding these structures and imposing high taxes will likely create burdens on US businesses and consumers as well.' While Trump's most severe tariffs have yet to come into effect, South Korean manufacturers have already reported some disruption. South Korea's exports dropped 2.2 percent in the first 20 days of July compared with a year earlier, according to preliminary data released by Korea Customs Service on Monday. Kim Sung-hyeok, the head of research at the Korean Confederation of Trade Unions (KCTU) Labour Institute, said exporters in the auto, steel, semiconductor and pharmaceutical sectors had been especially affected. 'As exports in these fields decreased considerably since the tariff announcements, production orders in domestic factories have declined,' Kim told Al Jazeera. 'Some automotive and steel production lines have closed temporarily, while other manufacturing sites have closed altogether. Voluntary resignations and redeployments have become rampant in some of these workplaces.' Kim said small companies may face the brunt of the tariffs as they are not capable of 'moving their manufacturing plants to the US', or 'diversifying their trade avenues outside of the US'. 'And as major companies face a general decline in exports, these small companies will consequently face a shortage in product delivery volume that will cause employment disputes,' he said. The Korea Development Institute estimated in May that the number of employed South Koreans would increase by just 90,000 this year, in part due to the economic uncertainties, compared with a rise of 160,000 last year. Even before Trump's arrival on the political scene, US-South Korea relations had gone through difficult periods in the past. In 2002, two South Korean middle-school girls were killed when they were struck by a US Army armoured vehicle. After the American soldiers involved in the incident were found not guilty of negligent homicide by a US military court, the country saw an explosion in anti-US sentiment and nationwide protests. In 2008, nationwide protests took place after the South Korean government decided to continue importing US beef despite concerns about the risk of Mad Cow Disease. More recently, President Lee, who was elected in June, has emphasised the importance of maintaining positive relations with China, Washington's biggest strategic rival and competitor. The KIEP's Keum said the US-South Korea relationship has evolved into a partnership where the US has become a 'conditional ally', where 'economic interests take precedence over traditional alliance'. 'The US is increasingly demanding South Korea to cooperate in its containment strategy of China among its other socioeconomic policies,' she said. Keum said that South Korea will need to seek out alternative markets and diversify its exports to mitigate the fallout of Trump's agenda. 'South Korea also doesn't need to act alone. The country can seek joint action with countries such as EU members, Japan and Canada to come up with joint responses to the current predicament,' she said.
Qatar Tribune
8 hours ago
- Qatar Tribune
As US and Europe cut aid budgets, China's star is on the rise in Southeast Asia: Report
Agencies China's role as Southeast Asia's largest infrastructure financier is increasing its regional influence at a time when the United States and the European Union are slashing their foreign aid budgets, a new report by an Australian think tank said. With the Trump administration in the United States scrapping about US$60 billion in aid and European countries pulling back more than US$25 billion, 'the centre of gravity' in Southeast Asia's development finance landscape 'looks set to drift East, notably to Beijing, but also Tokyo and Seoul', the Lowy Institute report, which was released today, said. 'China is the single largest partner on infrastructure financing in Southeast Asia, but traditional donors combined still outspend it,' the report's lead authors, Alexandre Dayant, Grace Stanhope and Roland Rajah, wrote. 'As Western aid declines and China recalibrates its strategy, Beijing is well positioned to regain dominance.' Southeast Asia's traditional partners include countries such as the US and Australia, and international organisations such as the United Nations, the Asian Development Bank and the World Bank. With the US expected to cut its foreign assistance by 83 per cent this year, the retrenchment of funds from Europe and tariff uncertainties undermining trade ties between the US and other countries, China is enhancing its influence in the region through infrastructure connections. Recent examples include work on high-speed railway links with Vietnam and Thailand. China International Development Cooperation Agency spokesman Li Ming told a news conference in March that China's 'principles related to foreign aid, including non-interference in internal affairs, no political strings attached and no empty promises made, will not change'.'A major country should act like a major country by shouldering its due international obligations and fulfilling its responsibilities, rather than renege on its promises, be mercenary or bullying,' he Lowy Institute report said that in 2023, China had 'ramped up' non-concessional loan disbursements by almost 50 per cent compared to 2022, accelerating major infrastructure projects such as the Jakarta-Bandung High-Speed Railway in Indonesia and the East Coast Rail Link in Malaysia. 'Even as the infrastructure race slows, China's relative importance as a development actor in the region will rise as Western development support recedes,' the report said. 'Beijing retains a substantial pipeline of infrastructure projects and has shown continued appetite to take on major projects.' Lower-middle-income economies such as the Philippines and Vietnam would engage with China when doing so aligned with their domestic priorities, the report said, while poorer economies such as Cambodia, Laos and Myanmar – which had limited access to alternative financing – remained 'heavily reliant' on China and had 'much less room to negotiate'. There was a fourfold increase in Chinese infrastructure project commitments from a low of US$2.5 billion in 2022 to almost US$10 billion in 2023 due to the revival of the Kyaukphyu Deep Sea Port project in Myanmar, the report said. It said the European Union and the governments of seven European countries – France, Germany, the Netherlands, Sweden, Finland, Austria and Italy – had announced plans last year to implement US$17.2 billion in foreign aid cuts between this year and 2029, while the United Kingdom was cutting around US$7.6 billion a year. Total development finance to Southeast Asia could decline by 8 per cent, or more than US$2 billion, to US$26.5 billion next year, according to Lowy Institute estimates based on budget documents, public announcements and calculations by other researchers.
Qatar Tribune
8 hours ago
- Qatar Tribune
Chinese EV brands Zeekr, Neta inflated sales in recent years
Agencies Chinese electric vehicle brands Neta and Zeekr inflated sales in recent years to hit aggressive targets, with Neta doing so for more than 60,000 cars, according to documents reviewed by Reuters and interviews with dealers and buyers. The companies arranged for cars to be insured before they were sold to buyers, the documents show, enabling them under Chinese industry car registration practices to book sales early so they could hit the monthly and quarterly targets, the dealers and buyers said. Neta booked early sales of at least 64,719 cars through this method from January 2023 to March 2024, according to copies of records it sent to dealers, seen by Reuters. That was more than half the sales of 117,000 vehicles it reported over the 15 months. Zeekr, a premium EV brand owned by Geely, used the same method to book early sales in late 2024 in the southern city of Xiamen through its main dealer there, state-owned Xiamen C&D Automobile, according to dealers, buyers and sales receipts seen by Reuters. Vehicles booked as sold before reaching a buyer are called 'zero-mileage used cars' in the Chinese auto industry. The practice has emerged out of cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. The industry faces a moment of reckoning, with state media calling out the zero-mileage car practice, the cabinet pledging to regulate 'irrational' competition, and other central government bodies organizing meetings with the industry's largest players to express concern about such methods. On Saturday a publication run by the China Association of Auto Manufacturers said the industry ministry was planning to clamp down on the practice by banning cars from being resold within six months of being registered as a sale. Also on Saturday, state media reported that Zeekr had been selling cars with insurance already purchased to inflate sales, the first such naming and shaming of a specific automaker. In a front-page story, the China Securities Journal newspaper interviewed Zeekr car buyers in cities such as Guangzhou and Chongqing, who the newspaper said had found that their cars already had insurance policies before they were sold. They said they were refused refunds, even though they felt they were deceived. The newspaper questioned Zeekr's unusually high sales in the cities of Shenzhen and Xiamen in December. Its reported sales in Xiamen surged to 2,737 that month, more than 14 times its monthly average. Reuters could not determine how much of that volume might have been booked early. The China Securities Journal also raised questions over Neta's sales, saying it showed anomalies. Reuters is reporting for the first time details of how Neta inflated sales. Zeekr, Zhejiang Hozon New Energy Automobile, which owns Neta, and Xiamen C&D did not respond to requests for comment on Saturday. — Reuters A spokesperson for Geely said, 'Geely firmly rejects the report put forward by the China Securities Journal.' The spokesperson declined to comment on Reuters findings or provide further details. Li Yanwei, an analyst with the China Automobile Dealers Association, said he believed the firms carried out such practices to embellish their financial reports and achieve their performance goals.
