Malaysia’s 50 years of China pragmatism hits a US rivalry roadblock

China has now been Malaysia’s top trading partner for the past 15 years in a row – a reminder of the Asian giant’s dramatic economic ascent since the two countries established formal relations on May 31, 1974.

Yet experts caution that neutrality may prove elusive in the months ahead, especially if the bitter sparring between Washington and Beijing over tech and trade issues intensifies.

Malaysia was left in an uncomfortable bind.

“Being pressured by one major trading partner on economic [cooperation] against another is a major concern for Malaysian policymakers,” said Thomas Daniel, a senior foreign policy fellow with the Institute of Strategic and International Studies Malaysia.

“Given the geopolitical realities we face, however, it is a prospect we must plan for. It will require no small amount of grounded planning, deftness in diplomacy and fortitude to uphold our interest.”

Experts warn that snubbing Chinese firms to appease Western governments could carry dire trade consequences for Malaysia, given its deep economic ties with China. Malaysia’s trade with China totalled 450.8 billion ringgit (US$96 billion) last year – accounting for 17.1 per cent of the Southeast Asian nation’s total trade and nearly double its volume with the US, according to Malaysian government data.

More than one-fifth of the country’s imports were shipped from China last year, ranging from electronics to machinery, chemicals and equipment.

These in turn feed Malaysia’s all-important manufacturing sector, which produces more than 85 per cent of the country’s exports.

But some analysts believe Malaysia can extract even more value from its relationship with China and its 1.4 billion-strong population.

“It’s a large economy, and a very open economy. Sure,