Assertive remarks unusual, but Putrajaya still has room to manoeuvre: Analyst
PETALING JAYA: China’s public remarks on Malaysia’s new trade pact with the United States, as well as similar agreements involving Cambodia, have raised eyebrows in diplomatic circles.
However, analysts say the concerns may be overstated and Malaysia still has room to manoeuvre as it balances relations with both superpowers.
Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun said the comments represent an uncommon instance of Beijing openly raising concerns with Malaysia over a bilateral agreement involving another country.
“China’s move reflects both its concern that this matter could harm its national interests and its increasingly assertive diplomatic posture.”
He added that this is partly because China is facing, in a sense, a confrontation with the US.
“It is an open secret that the US and China are confronting each other geopolitically, and on other issues.”
He also said high-tech electronics supply chains play a central role in the dispute.
“China is the largest trading partner for most Asean countries, including Malaysia and is deeply integrated into electronics supply chains.
“Any move that minimises China’s role is seen as harmful to its national interest.
“That is why they are pushing this matter openly.”
He said despite the pressure, Malaysia appears determined to maintain its position in US-led high-tech supply chains.
“We can only take things step-by-step as these two superpowers confront each other.
“At times, we may need to align more closely with one side, and at other times with the other depending on how our national interest is best served.
“In this particular case, Malaysia would resolutely want to remain part of the US-led supply chain.”
He added that from Washington’s perspective, the arrangement would naturally reduce China’s role, explaining Beijing’s concern.
He also said Malaysia needs to stay involved in the new high-tech electronics supply chain.
“If that is a condition set by the US, we would have to bite the bullet and accept it.”
Oh also said Putrajaya could continue exploring trade deals with China to help “diffuse the situation”.
Yesterday Prime Minister Datuk Seri Anwar Ibrahim assured that China’s concerns over Malaysia and Cambodia’s recent trade agreements with the US have been addressed and should not be overstated.
“China sought some clarification and we have provided it.
“I do not think the issue should be exaggerated: China remains an important trading partner for Malaysia.
“There were some points that required clarification, which we have already conveyed,” Anwar told reporters after launching the new Perodua electric vehicle, the QV-E.
He added that during his bilateral meeting with Chinese Premier Li Qiang, he emphasised that “nothing in the agreement” prevents Malaysia from continuing its cooperation and collaboration with China.
The remarks of the prime minister follow foreign media reports last week suggesting that Beijing had expressed concerns over the trade deals, highlighting the delicate balancing act countries face amid the intensifying rivalry between Washington and Beijing.
The dispute stems from the signing of the Agreement on Reciprocal Trade between Malaysia and the US during President Donald Trump’s visit to the Asean Summit in October.
The deal carries provisions that nudge Malaysia toward aligning with Washington on national security issues such as export controls, investment screening and sanctions.
While China has long urged countries to avoid agreements that might undermine its interests, this public complaint marks an unusually blunt diplomatic response.
