China’s Xi hails ‘new golden era’ with Malaysia during trade tour | International Trade News

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Xi’s visit to Malaysia is part of a regional diplomatic charm tour amid stinging US tariffs.

Chinese President Xi Jinping has met Malaysia’s King Sultan Ibrahim in Kuala Lumpur as part of a regional push to shore up Beijing’s trade relationships.

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.

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Chinese President Xi Jinping inspects an honour guard during the official welcoming ceremony at the national palace in Kuala Lumpur, Malaysia, Wednesday, April 16, 2025. Vincent Thian/Pool via REUTERS REFILE - QUALITY REPEAT
Chinese President Xi Jinping inspects an honour guard during the official welcoming ceremony at the national palace in Kuala Lumpur, Malaysia, April 16, 2025 [Vincent Thian/Pool via Reuters]

“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.

‘Wake-up call’

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.

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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.

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“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.

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