Malaysia, China deepen trade ties with high investment success rate: minister

Malaysia and China have strengthened trade relations, achieving a notable investment success rate, said Tengku Zafrul Abdul Aziz, Malaysia's Minister of Investment, Trade and Industry, on Tuesday.

Official data showed that China has been Malaysia’s largest trading partner for 16 consecutive years, with trade volume reaching a record high of over 212 billion U.S. dollars last year. The two nations signed more than 30 bilateral cooperation agreements last month, many of which concern trade and investment.

The minister said that Malaysia is intensifying efforts in implementing these agreements.

"We are monitoring this very closely. We have the one-stop center, we call it the Invest Malaysia Facilitation Center or IMFC, which works together with all the other various agencies and the relevant ministries and states as well, and we work closely with our counterpart in China. In fact, they're tracking it as well, the companies that have announced their investments in Malaysia. The success rate has been very high, typically according to monitoring data, close to 85 percent, the success rate of acquisition," said the minister.

Expressing optimism about the implementation of the agreements, the minister noted that the success rate for completing announced projects has typically ranged from 85 to 87 percent.

China is also Malaysia's second-largest source of foreign direct investment, with Chinese capital flowing into key sectors including the digital economy, electric vehicles, green technology, and downstream petrochemicals.

The minister emphasized a strategic focus on attracting high-complexity investments that promote value chain advancement and deeper technology integration between the two nations.

"We have seen various sectors. In fact, if you look at investments from China into Malaysia, it cuts across nearly all sectors, cuts across the digital economy, talking about EV as well, sustainability, the green economy. We also look at other sectors. Malaysia, as you know, is in the e-and-e sector, this is a big component of our manufacturing base and also one of the big exports is the e-and-e. And China is also quite important part of that supply chain. And finally, when you look at investments in other areas, including areas such as going downstream in chemicals, petrochemicals. So it really covers a wide range of sectors. And what we want to see is more investments coming into sectors that are with higher economic complexity, which will then bring Malaysia together with Chinese technology and Chinese companies going up the value chain," he said.

Malaysia, China deepen trade ties with high investment success rate: minister

China and the European Union (EU) have agreed that it is necessary to provide general guidance on price undertakings for Chinese exporters of passenger battery electric vehicles to the EU, China's commerce ministry said on Monday.

The move aims to address relevant concerns in a more practical, targeted, and consistent manner with World Trade Organization (WTO) rules, according to the Ministry of Commerce in a statement.

Accordingly, the European Commission will issue a Guidance Document on Submission of Price Undertaking Offers. In the document, the EU confirms that it will assess each undertaking application under the same legal criteria, in accordance with the principle of non-discrimination and relevant WTO rules, in an objective and fair manner.

The progress fully reflects the spirit of dialogue and the outcomes of consultations between China and the EU. It shows that both China and the EU have the ability and willingness to properly resolve differences through dialogue and consultation within the framework of WTO rules, thereby maintaining the stability of automotive industrial and supply chains in China, the EU, and the whole world. This is conducive not only to ensuring the healthy development of China-EU economic and trade relations, but also to safeguarding the rules-based international trade order, the statement said.

On the same day, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) also issued a statement welcoming the positive outcome of the consultations.

The CCCME noted that eligible Chinese EV makers may now submit price undertaking applications in accordance with the EU's guidance, and the European Commission has pledged to review all applications objectively, fairly, and under uniform standards.

The proper settlement of this case meets the shared expectations of industries along the EV supply chain in both China and Europe. It will help ensure the security and stability of related industrial and supply chains and safeguard the broader China-EU economic and trade relationship, the CCCME said.

The chamber expressed appreciation for the substantial efforts made by China's Ministry of Commerce in defending the interests of the domestic industry. It also pledged to encourage and support relevant Chinese enterprises in making full use of the consultation outcomes to protect their interests in exporting to the EU and promote healthy cooperation between the industries of both sides.

China, EU agree on price undertaking guidance for Chinese electric vehicle exporters: commerce ministry