FAQs about bilateral relations

Q: In 1971 when Malaysia was experiencing severe floods, China sent aid and this gesture may have sparked the idea of normalising relations. When were the other notable occasions when China came to Malaysia’s aid, and vice versa?

A: Malaysia and China have on many occasions extended monetary and other relevant assistance to each other during times of need, particularly in the face of calamities that befell both countries.

During the recent incident involving the missing MAS flight MH370, China was the first foreign country that despatched naval vessels, aircraft and experts to assist Malaysia in the search and rescue operations which continues till today. Malaysia strongly believes that China would have extended similar assistance even if most of the victims were not Chinese citizens.

Q: How does the bilateral relationship in 1974 compare to now, 40 years later?

A: Bilateral relations have progressed well since then, particularly in the area of economic cooperation. The Joint Statement on the Framework for Future Bilateral Cooperation signed on 31 May 1999 and the Joint Communiqué issued in May 2004 and December 2005 signified major steps forward for Malaysia-China relations.

Bilateral relations have since been elevated to the level of strategic cooperation when both countries signed the Joint Action Plan on Malaysia-China Strategic Cooperation, during the first official visit of the Prime Minister to China in June 2009.

The Joint Action Plan has provided the road map for a comprehensive plan for deeper cooperation between both countries.

Both countries further elevated the bilateral relations to “Compre­hensive Strategic Partnership” during the State Visit of President Xi Jinping in October last year.

It marked a new level of the bilateral cooperation of both countries in various fields, namely trade, investment, tourism, education, financial services, infrastructure development and defence.

This new level of partnership entails engagement in enhancing cooperation between both countries.

Both sides also reaffirmed their shared desire to maintain close high-level contacts, deepen friendly exchanges and cooperation in all fields as well as to promote new development of the Malaysia-China relationship.

This year, Malaysia and China celebrate the 40th anniversary of establishment of diplomatic relations. To commemorate this event, both Malaysia and China agreed to designate the year 2014 as the “Malaysia-China Year of Friendly Exchanges”.

To mark the importance of these bilateral relations, Prime Minister Datuk Seri Najib Tun Razak will undertake an official visit tomorrow to China to coincide with the dates of the visit by Tun Abdul Razak in 1974.

Q: How big a role has trade and investment played in driving the bilateral relationship?

A: Economic cooperation is the cornerstone of Malaysia and China bilateral relations.

Over the last decade, trade in particular has increased more than four-fold and the continued business-to-business interaction bet­ween both countries, facilitated by both governments, will ensure that Malaysia-China economic cooperation remains robust.

Q: What needs to be changed or improved?

A: Despite the fact that China is Malaysia’s largest trading partner globally for the last six years, Chinese investment in Malaysia is relatively small and ranks behind other countries such as the United States, Japan, South Korea and the European Union. In 2012, Malaysia’s cumulative foreign direct investment into China stands at an estimated US$6.3bil (RM20.2bil).

The investment cross flow from China to Malaysia however, is only a fraction of that, hence the need to attract more Chinese investment to Malaysia.

The establishment of the Malaysia-China Kuantan Industrial Park is one of the Malaysian Government initiatives to attract more Chinese investment to Malaysia.

Q: How has Malaysia handled the issue of the South China Sea in terms of its relationship with China?

A: Issues relating to the South China Sea are multi-faceted, complex and highly sensitive.

Generally speaking, issues relating to the South China Sea can be divided into two aspects and it is important to make a distinction between these two aspects: issues of common concern to all countries, which include safety of navigation, freedom of navigation, as well as maintaining peace and stability; and the territorial and maritime disputes which should only be discussed by the countries concerned, i.e., the claimant states.

Malaysia believes matters relating to the South China Sea must be managed in a rational way. It is important that all parties refrain from taking any action that will further complicate the matters.

All parties should resort to peaceful dialogue and consultations in managing their differences, in accordance with the recognised principles of international law, inclu­ding the United Nations Convention on the Law of the Sea 1982.

Maintaining peace and stability in the South China Sea must be the key agenda.

All parties should continue with the full and effective implementation of the Declaration on the Conduct of Parties in the South China Sea.

All parties should maintain a conducive environment to ensure consultations on the establishment of the Code of Conduct in the South China Sea would not be derailed.

Compiled with the assistance of Wisma Putra