Malaysia’s recent signing of the Agreement on Reciprocal Trade (ART) with the United States has reportedly increased China’s interest in strengthening trade ties with the country, according to Senator Datuk Tengku Zafrul Abdul Aziz.
Speaking in the Dewan Rakyat during the Budget 2026 committee stage debate, the minister of investment, trade, and industry said Malaysia and China are expected to sign a new bilateral memorandum of understanding, though he did not provide further details.
Zafrul noted that last week, Beijing had issued a statement expressing “serious concerns” about certain clauses in the US trade deal, particularly those that could impact Chinese interests. He added that Putrajaya had anticipated the statement and had already briefed Chinese officials on Malaysia’s position.
“Our team explained our position to the Chinese delegation, and they indicated they needed to formally record that the US agreement would not affect trade between our countries,” he said. “The statement was fine, and negotiations continue. In fact, this issue has brought us closer to China, as they are now keen to sign a new MoU.”
Malaysia is already a participant in several regional trade agreements with Beijing, including the upgraded ASEAN-China Free Trade Agreement, signed by member states at the 47th ASEAN Summit in October amid US tariff threats.
