Li Qiang’s visit spotlights Malaysia’s China-US diplomatic dance

But experts say the visit – the first by a top Chinese leader in over a decade – highlights the challenge Malaysia faces striking a balance between the economic bonanza afforded by its geographical proximity to China and its defence and geopolitical interests, which are propped up by Western partners.

China has ranked as Malaysia’s top trade partner for 15 years running.

“Anwar’s public posturing may be interpreted to be too pro-China, despite his rhetoric of supporting universal values that the US and the West are promoting,” said Tunku Mohar Mokhtar, a geopolitical analyst with the International Islamic University Malaysia.

The US remains Malaysia’s largest investment partner and Anwar said in a recent interview that Washington had queried Malaysia over its semiconductor investments and exports to China, telling This Week in Asia that his country would “undoubtedly face some issues, some questions”.

Malaysia’s semiconductor industry – which serves 13 per cent of global demand in the packaging and testing sector – got its start thanks to significant investments from American firms such as Intel in the 1970s, with the US market accounting for up to a quarter of Malaysia’s chip exports.

However, analysts warn that this lucrative ecosystem could be put at risk if Malaysia is perceived as becoming too aligned with China.

Collins Chong Yew Keat, an international affairs analyst specialising in US foreign policy at the University of Malaysia, said investments in “critical areas” such as public infrastructure, transport and the “key digital domains of 5G and artificial intelligence … remain a concern among Western players due to the risks [of] potential future vulnerabilities.”

Brian McFeeters, the US ambassador to Malaysia at the