China offers to help Malaysia link rail line to Thailand
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China offers to help Malaysia link rail line to Thailand

Visiting Chinese premier woos country that has asserted neutrality amid Beijing-Washington rivalry

Chinese Premier Li Qiang, left, walks with Malaysian Prime Minister Anwar Ibrahim during their meeting in Putrajaya, Malaysia, on Wednesday. (Photo: Reuters)
Chinese Premier Li Qiang, left, walks with Malaysian Prime Minister Anwar Ibrahim during their meeting in Putrajaya, Malaysia, on Wednesday. (Photo: Reuters)

KUALA LUMPUR - China is willing to work with Malaysia to study connecting the East Coast Rail Link (ECRL) with the rail line in Thailand, Chinese Premier Li Qiang said on Wednesday.

The $10-billion ECRL is part of China’s Belt and Road Initiative. Malaysia recently began considering extending the route closer to the border with Thailand.

First proposed in 2017 and having undergone numerous changes since then, the 665km rail line will connect the east and west coasts of peninsular Malaysia by the end of 2026. The line is being built by the Malaysian unit of China Communications Construction Co Ltd.

Li is on the second day of a three-day visit to Malaysia, as Beijing looks to deepen ties with a country that has asserted its neutrality amid intensifying rivalry between the US and China.

The Chinese premier met with Prime Minister Anwar Ibrahim in the administrative capital Putrajaya on Wednesday. They witnessed the signing of several bilateral deals, including for exports of fresh durians from Malaysia to China.

The agreement would see Malaysia, one of the world’s biggest producers of the pungent fruit, join Southeast Asian neighbours Thailand and Vietnam in shipping fresh durian to the multi-billion-dollar Chinese market. Malaysia was previously allowed to ship only durian products and frozen whole durian to Chinaa.

China and Malaysia also agreed to a plan for economic and trade cooperation that would run through 2028, according to a statement from Anwar’s office. Officials pledged as well to discuss additional visa exemptions — boosting a mutual visa-free entry policy between the two countries.

Anwar and Li also agreed that China and relevant Asean countries should independently handle disputes in the South China Sea issue, the Xinhua News Agency reported. Vietnam, the Philippines, Brunei, Malaysia and Taiwan claim parts of the same maritime area, and have sparred with China over which claims are valid.

Li’s arrival marks the first visit by a Chinese premier to the Southeast Asian nation since 2015. It coincides with Anwar’s efforts to maintain ties with both China and the US, while positioning Malaysia as a destination for investment from both powers.

The Malaysian leader last month pledged at least 25 billion ringgit ($5.3 billion) to support the country’s semiconductor industry, as the US-China contest shakes up global supply chains.

“We refuse to be defined by how major powers see the world. So we will continue to strive for our national and strategic interests, defined on our own terms,” Anwar said in a Facebook post on June 7. “Malaysia maintains a strong and fruitful relationship with both China and the United States.”

Malaysia has, in recent weeks, announced several tech-related investment pledges from US and China, including from ByteDance, Google and Microsoft. It has done so while having political disagreements with both countries — with China, on its expansive claims in the South China Sea and with the US on its stance on the Israel-Hamas conflict.

China has been Malaysia’s largest trading partner since 2009, with total bilateral trade worth $98.9 billion, said the Foreign Ministry. Li’s visit coincides with the 50th anniversary of diplomatic relations between the two countries.

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