MALAYSIA - CHINA RELATIONS

BY NORSHILA DAN RIBIYATUL ADAWIAH 

History of bilateral relations between Malaysia and China began in the 15th century. Friendship between China and Malaysia has long historic. During the Tang Dynasty, 'Master Yijing' already visited Malaya earlier, according to the Malaysia. In the Ming Dynasty, five of the seven voyages of Admiral Zheng He to the Western Ocean anchored in Malacca. This cruise strengthen the brotherhood between the peoples of the two countries to maintain peace and prosperity to the surrounding area for a hundred years and also led to the existence of a unique ethnic group of Baba and Nyonya. The rapid growth of China in trade and economy is the competition for exports in the international market. This is one trend where Chinese products are getting quality and have competitive prices and this will give a tough competition to the products of other countries. In addition, Chinese products also comply with the standards of the world and gained recognition and acceptance among consumers in traditional markets like the United States, Malaysia, Japan and the European Union. Chinese companies have also upgraded their branding, some world class and has gained international recognition.
Item of China today has been well received in developed countries like the United States and Europe. In addition, a recent study showed that 7 out of 10 of the most recognized brands in China compared to five years ago where the brand from Japan dominated the list. Although faced with a tough challenge from China, the Malaysian business community needs to see economic development take place in China in a positive way. Although China is a competitor, they also create opportunities for cooperation towards trade and investment flows across borders. Therefore, companies should position themselves to participate in the huge business potential in China. Over the years Malaysia and China have established strong bilateral trade. Trade between the two countries has been enhanced over the years. since 1991, total trade has increased by 6 times, exports to China of 7-fold and imports from China six times. In the first seven months of 2002, China has emerged as an export market 4th largest in Malaysia and also as a source of imports. In addition, residents of the two countries also obtaining the number of visiting with more than three million tourists were recorded each year. When the initiative 'One Belt One Road' and encouraged international cooperation capacity, Malaysia is ahead of other countries in terms of reaction. Malaysia's active participation inject new vitality into bilateral cooperation for the benefit of both parties. Since two years ago, China's investment in Malaysia grew rapidly with a number of large-scale investment projects and the company's China regional headquarters located in Malaysia. More and more Malaysian businessmen to invest in China to help extend and expand the market. Beijing and Kuala Lumpur is considered a destination exchange local currency with RMB clearing bank established in Malaysia facilitate the two countries in trade and investment cooperation.