Malaysian PM Mahathir looks to reset relations during China visit

Malaysian Prime Minister Dr Mahathir Mohamad has a busy schedule for his visit to China (17 August to 21 August), his first since retaking power in May 2018. Up to six cabinet ministers are travelling with him, according to the South China Morning Post.

Mahathir is expected to meet National People’s Congress chairman Li Zhanshu and Premier Li Keqiang, as well as have a banquet dinner with President Xi Jinping. The Straits Times described the visit as a chance to mend fences between the two countries, whose relationships have been strained over Mahathir’s decision to review major Chinese-backed infrastructure projects. The Malaysian Foreign Ministry called the visit ‘a new milestone in the consolidation of bilateral ties’ while the Chinese Ambassador to Malaysia said ties would be at a ‘new historical starting point’.

Malaysia-China relations have taken a frostier turn since Mahathir took office, Channel NewsAsia reports. Some of this is due to Mahathir’s suspension of several Beijing-backed infrastructure projects signed under the Najib administration and worth about US$23 billion, claiming they are too expensive, do not support Malaysian labour and are tilted against Malaysian interests. CNBC reports he will likely push to renegotiate them rather than cancel them outright.

Mahathir has also stated he wants to maintain ‘close relations’ with China, Xinhua reports. In a sign that close business ties will continue, Mahathir will also visit Hangzhou to tour the headquarters of Alibaba Group, following a previous meeting in June with Alibaba founder Jack Ma, the Edge reported. He will also tour the headquarters of Zhejiang Geely, the automaker which partly owns Malaysian brand Proton, and the Beijing headquarters of drone maker DJI. He will also sign three MoUs with Premier Li in the areas of agriculture and agricommunity, illustrating Kuala Lumpur’s continued desire to deepen business ties with China.

Asia House’s Head of Research and Advisory, Ed Ratcliffe, has assessed Mahathir’s first 100 days for The Diplomat.