Malaysia to host China’s Xi as Asean seeks shelter from Trump tariff storm
Xi’s three-day visit to Malaysia will give local firms the chance to look for better access to China to offset potential tariff pain, analysts say
Malaysia is set to welcome Chinese President Xi Jinping on Tuesday, as scattergun tariffs from Washington threaten growth, sow panic among exporters and raise questions about whether Southeast Asian nations can maintain neutrality as the global order is tilted by Donald Trump’s presidency.
Xi will spend three days in Malaysia on his first visit since 2013, meeting the country’s king, Sultan Ibrahim Iskandar, and Prime Minister Anwar Ibrahim, with a raft of deals expected to be signed on Wednesday.
China has been Malaysia’s largest trading partner for 16 straight years, with two-way trade hitting 484.1 billion ringgit (US$110 billion) last year.
But America’s giant consumer market still buys the most Malaysian goods, spending US$45 billion last year, mostly on semiconductors key to production of high-end chips.
Tariffs of 24 per cent on most Malaysian goods threaten those crucial exports – although semiconductors appear set for a temporary reprieve.
While Trump has suspended the tariffs for 90 days, experts say Xi’s visit gives Malaysian companies the chance to look for better access to China to offset the likely pain ahead.