Malaysia urged to adopt a “Malaysia first” approach as US-China rivalry intensifies, with experts calling for decisions based on national interests
PETALING JAYA: The nation should adopt a “Malaysia first” approach to navigate the growing strategic tug-of-war between the United States (US) and China in Southeast Asia, said a regional expert.
International Islamic University Malaysia deputy dean of the Ahmad Ibrahim Kulliyyah of Laws Assoc Prof Dr Mohd Yazid Zul Kepli said prioritising national interests is crucial to managing current geopolitical tensions.
“Malaysia should take benefits from both the US and China but ensure that every decision is anchored in national interest principles rather than bloc politics.”
China’s unusually blunt public warning over Malaysia’s Agreement on Reciprocal Trade (ART) deal with the US, expressing “grave concerns”, signals a sharper, more visible phase in the US-China rivalry in the region.
“It’s quite rare but not totally shocking. China and Malaysia normally handle disagreements quietly but this time, Beijing openly raised its concerns.”
He added that foreign media reported it last week as possibly the first direct Chinese complaint about the Malaysia-US trade pact.
Mohd Yazid said while China has long been Malaysia’s largest trading partner, the public statement is consistent with Beijing’s increasingly assertive style in responding to US deals with neighbouring countries.
“China previously exerted open pressure on South Korea over the US Terminal High Altitude Area Defence missile system and on the Philippines for granting the US greater access to its bases.
“In the broader context of US-China rivalry, this episode aligns with Beijing’s pattern of speaking out when neighbouring countries enter agreements involving security or high-tech trade.”
He said Prime Minister Datuk Seri Anwar Ibrahim’s remarks that the concerns are being “exaggerated” reflect Malaysia’s effort to reassure both powers while maintaining a neutral stance.
Mohd Yazid added that the episode highlights a structural shift in the region.
“As the US incorporates more explicit ‘anti-China’ provisions into trade agreements, and China responds assertively, Southeast Asian countries are facing a shrinking middle ground.
“China now treats even trade deals as part of the wider strategic contest with Washington, not just economics. The room for quiet hedging is shrinking.”
He said the public nature of China’s warning also sends a broader message to the region that countries that sign US frameworks containing “poison pill” or loyalty clauses which could restrict cooperation with China may face pushback.
“Malaysia reflects a region where the US is embedding strategic conditions into economic frameworks. China is openly contesting those moves and Asean countries are facing increasing pressure to choose sides even as they insist on working with both.”
He said the ART commitments could be portrayed as Malaysia drifting towards the US camp, particularly by Chinese commentators or domestic critics.
“But they don’t necessarily amount to strategic alignment if Malaysia implements them in a neutral, rules-based manner while maintaining visible engagement with China. It’s a delicate balance.”
Mohd Yazid said short-term reassurance from Anwar may ease immediate tensions but structural pressures would persist.
“You can defuse this episode but the underlying great power tug-of-war will keep returning.
“Malaysia must continue to clearly explain the legal scope of the US deal, quietly reassure Beijing that Chinese trade and investment remain welcome and be meticulous in all future agreements.”
The ART was signed by Malaysia and the US in October during the 47th Asean Summit in Kuala Lumpur.
China has remained Malaysia’s largest trading partner for 16 consecutive years, with bilateral trade reaching RM484.12 billion in 2024, accounting for 16.8% of Malaysia’s total global trade. Singapore and the US follow closely behind.
