Saturday, February 27, 2010

Malaysia, China Expand Bilateral Trade Ties

Chinese Ambassador to Malaysia Liu Jian said that the Malaysia-China relations in recent years have indeed entered a best period in the diplomatic history of both nations. He added that after the mutual visits by the two national leaders to each other's country, the bilateral ties between Malaysia and China have turned even better.
Therefore, both nations should take such opportunity to follow through and create more favorable conditions for both nations to push the bilateral exchange and cooperation in the economic, cultural and other fields to a new high.In accepting Nanyang Siang Pau's exclusive interview, Ambassador Liu Jian said that in this New Year, the Chinese Embassy in Malaysia would focus on coming out with programs to advance the friendly bilateral ties between the two countries.
The first item on Ambassador Liu's to-do list is in the expansion of trade and related investment between the two nations. The Chinese envoy said that in 2009, the Malaysia-China bi-lateral trade volume has reach $50 billion (about M$ 170.1 billion ringgit). This bilateral trade volume accounted for China's one-fourths trade volume with ASEAN (Association of South East Asian Nations). It was a heavy percentage.
Economic and Trade Supplement
Ambassador Liu said that on economic and trade, Malaysia and China could supplement each other's need. Both nations could promote the diversification of trade and deepen economic and trade exchanges. He disclosed that at this juncture, when more and more Chinese enterprises were keen to "explore the outside world", the Chinese authorities would continue to encourage large Chinese enterprises to invest in Malaysia. He said that at present stage, many Chinese provincial and municipal leaders have already begun to promote work in this area. At the same time, China also welcomed Malaysian companies to continue their investment in China. When Prime Minister Datuk Seri Najib made his first official visit to China in his capacity as the Prime Minister in June 2009, both countries have agreed on three agreements and one memorandum of understanding. Ambassador Liu Jian was one of the backstage contributors toward cementing these agreements between the two countries.
The first important agreement signed between Malaysia and China as witnessed by Malaysian Prime Minister Najib and Chinese Prime Minister Wen Jiabao was the "Malaysia-China Joint Action Plan on Strategic Cooperation." The second agreement was the "Abolition of Visa Agreement" which covers regulations on the travel of holders of diplomatic and official or service passports. These personnel will no longer be required to get visas for travel to China or Malaysia. The third document signed between the two countries was the "Marine Science and Technology Cooperation Agreement." The memorandum of understanding signed was the" Malaysia-China Postal Cooperation MoU (Memorandum of Understanding)."

Strong Business Opponent
Chinese Ambassador to Malaysia Liu Jian opined that Malaysian businesses should not hold the concern that once the ASEAN-China Free Trade Zone was fully implemented, Malaysia's domestic enterprises could not face the strong competitors coming from China and that it the process the Malaysian enterprises would be "swallowed" by the Chinese enterprises. He added that all nations should look at the bigger picture and the overall situation of the Free Trade Area Agreement and avoid "losing the big issues just because we focus on smaller ones."
The Chinese envoy said that it was based on common interest that China and ASEAN countries worked to achieve this ASEAN-China Free Trade Area. He said China and ASEAN countries have spent ten years to prepare for the free trade area. He added that the reduction of tariffs between China and ASEAN would be done year by year gradually.
Therefore, the implementation of the ASEAN-China Free Trade Area would not bring much economic and trade impact to all countries concerned. Ambassador Liu said, "The full implementation of the ASEAN-China Free Trade Area will be carried out in two stages. The first stage of implementation is between China and the few founding members of ASEAN. By 2015, the full ASEAN-China Free Trade Area will then be expanded to cover all the newer ASEAN nations." This was what Ambassador Liu Jian said when he accepted the interview with Nanyang Siang Pau.
When asked to comment on the dilemma faced by the Malaysian SMEs (Small and Medium Size Enterprises) as the direct result of the implementation of China-ASEAN Free Trade Area agreement in Malaysia, Ambassador Liu Jian said that if what the Malaysian enterprises produced were similar to the products of what the Chinese enterprises came out, it was quite normal for Malaysian enterprises to have such concern and fear. However, he added that we should all look at the overall situation and should not allow the smaller issues to block out the bigger issues as well as the bi-lateral trade benefits in the long run.
Setting Up Bank's Branch When asked to comment on the internationalization of Chinese currency Renminbi (RMB), Ambassador Liu Jian that it would be a long process to get it done. First of all, China must begin with carrying out such process with neighboring countries surrounding China. He also hoped that after the establishment of Bank of China in Malaysia, the Industrial and Commerce Bank of China could also open a branch in Malaysia as planned.
He hoped that the setting up of this second Chinese bank in Malaysia could be materialized within this year. He commented that on the setting up of this second bank in Malaysia as far as China was concerned everything was ready. He believed there should not be any procedural problem on this.

Closer Cooperation in Education
Ambassador Liu Jian hoped that in this New Year, the educational cooperation between Malaysia and China could move closer. He said that there were about one million Chinese students studying in Malaysia. There were also about 2,000 Malaysian students doing their courses in China. He said the number of Chinese and Malaysian students pursuing courses in each other's county respectively were on the increase.
Ambassador Liu Jian stressed that the mutual recognition of university degrees from both nations would require the joint efforts of two nations. He suggested that the governments and local community from both countries should encourage and assist Malaysian students and Chinese students to study in each other's country, including the provision of scholarships to the students concerned.The US envoy to Malaysia was happy to note that a Confucius Institute has already been established at the University of Malaya. He hoped that more Confucius Institute could be established in other Malaysian universities so that Chinese language teaching and learning could be provided to more Malaysian students for them to understand the Chinese culture.On the development of bi-lateral tourism, Ambassador Liu Jian said that Chinese was in the process to expand its tourism market and domestic demand for it. He expected China would soon have a vigorous tourism development and that would also encourage more Chinese tourists to visit Malaysia.

Goals To Become Advanced Nations
US Ambassador to Malaysia Liu Jian described the ASEAN -China Free Trade Area as a very important first step for China and ASEAN countries to implement. He said that through this Free Trade Area agreement, "Asian power" could be enhanced. He said that through this Free Trade Area, Malaysia, China, and other ASEAN countries could have an additional economic development channel to strengthen respective trade.
He said that when we added 10 ASEAN countries plus China together, the total market has a potential market for 1.9 billion people. Therefore, the potential market development toward that direction was very huge. It could become one of the world new economies comparable to the European Union and the North American economic bloc.
Ambassador Liu Jian opined that the implementation of the ASEAN-China Free Trade Area would enable the trade between Malaysia and China to further expand. It would also create new cooperation opportunities between the two nations in agriculture and other sectors.
Ambassador Liu Jian said that China should enter the well-off society by 2020; Malaysia also has its Vision 2020 goal to become a developed nation. Therefore, it could be said that Malaysia and China share similar goal to become advanced countries. He said the two nations should further explore new cooperation points and opportunities to face a brighter future ahead of Malaysia and China.

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