China-Malaysia Sign 30 Deals - 'ASEAN Will Not Concede to Any Unilaterally Imposed Tariffs' - Anxiety Over Foreign Trade Enterprises & Employment
Here are the key reports and articles that I found noteworthy from the People's Daily’s edition on Thursday, April 17, 2025.
Page 1: The lead report is about Xi Jinping’s visit to Malaysia. He met with Malaysian King Sultan Ibrahim Sultan Iskandar. Xi talked to him about the goal of ushering in a new ‘Golden 50 Years’ for bilateral ties. Xinhua reports:
Xi said that “China and Malaysia are good neighbors, good friends and good partners who visit each other as often as family. Bilateral relations have gone through a magnificent half-century and are embracing an even brighter future, he added. Xi said he is ready to work with Sultan Ibrahim, the Malaysian supreme head of state, to lead the long-term and stable development of China-Malaysia ties, and write a new chapter in good-neighbourliness, friendship, solidarity and cooperation. China and Malaysia should continue to deepen political mutual trust and support each other on issues concerning their respective core interests and major concerns, Xi said. The two sides should deepen the synergy of development strategies, draw on each other's strengths for mutual benefit and win-win results, and jointly pursue modernization, he said. He called on the two sides to ensure good implementation of major projects such as the ‘Two Countries, Twin Parks’ program and the East Coast Rail Link, and to actively foster cooperation in future industries such as artificial intelligence, digital economy and green economy. China welcomes more high-quality Malaysian agricultural products to the Chinese market, and encourages Chinese enterprises to invest in Malaysia, he said. China stands ready to promote the Confucian-Islamic civilizational dialogue with Malaysia and to carry out further cooperation with Malaysia in culture, tourism and education to enhance people-to-people exchanges between the two countries, said the Chinese president. China supports Malaysia in its role as the ASEAN chair and stands ready to work with Malaysia to implement the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative, Xi said. He also urged joint efforts to promote the Global South’s pursuit of solidarity-driven collective advancement and common development.”
As per Xinhua, Sultan Ibrahim said that “Malaysia attaches great importance to its relations with China and will join hands to forge ahead for win-win cooperation and promote the building of the high-level strategic China-Malaysia community with a shared future no matter how the international landscape evolves…Malaysia attaches importance to regional economic integration, firmly supports the Belt and Road Initiative, and is ready to strengthen trade and investment cooperation with China, jointly stabilize industrial and supply chains, enhance connectivity and boost people-to-people and educational exchanges.”
The next report is on Xi’s meeting with Malaysian Prime Minister Anwar Ibrahim. The Chinese readout says that Xi made a three-point proposal on building a high-level strategic China-Malaysia community with a shared future.
“First, upholding strategic independence and carrying out high-level strategic coordination. Both China and Malaysia are self-reliant nations that oppose external interference. Both countries should continue on the development paths suited to their respective national conditions, resolutely support each other in safeguarding national sovereignty, security and development interests, and hold their future and destiny firmly in their own hands. A ‘2+2’ diplomatic and defense dialogue mechanism will be established to deepen exchanges and cooperation on national security, defense and law enforcement.
Second, combining forces for development and setting a benchmark for high-quality development cooperation. China is committed to advancing Chinese modernisation on all fronts through high-quality development. This is highly compatible with Malaysia’s Ekonomi MADANI initiative. The two sides should work together to cultivate and expand cooperation in the digital economy, green economy, blue economy, artificial intelligence and other frontier areas, and strengthen the integrated development of industrial chains, supply chains, value chains, data chains, and talent chains. It is important to push for the transformation and upgrade of cooperation in traditional fields, and promote two-way investment. The two countries should promote rail-sea intermodal transport, upgrade ‘Two Countries, Twin Parks’, and turn Malaysia’s major ports into important hubs of the New International Land-Sea Trade Corridor.
Third, carrying forward the friendship forged through generations, and deepening inter-civilisational exchanges and mutual learning. The two sides should jointly advance Confucianism-Islam dialogue, and build platforms of civilizational exchanges for both countries and the region. Having signed a mutual visa exemption agreement, the two sides should seize the opportunity to scale up tourism, youth and subnational exchanges, and deepen cooperation in culture, education, sports, film, media, etc., so as to foster closer people-to-people connection and renew their traditional friendship. China is ready to continue joint research on giant panda conservation with Malaysia.”
He added:
“China supports Malaysia in playing its role as ASEAN Chair, and stands ready to sign the China-ASEAN Free Trade Area Upgrade Protocol with regional countries as early as possible. Together, they will reject decoupling, supply disruption, ‘small yard, high fence’ and tariff abuse with openness, inclusiveness, solidarity and cooperation, counter the law of the jungle where the strong prey on the weak with the Asian values of peace, cooperation, openness and inclusiveness, and address instability and uncertainty in the world with the stability and certainty of Asia.”
As per the Chinese readout, Anwar Ibrahim heaped praise on Xi, backed a one-China policy, and agreed with Xi’s proposals. He also reportedly said that “facing the rise of unilateralism, Malaysia will work closer with China to jointly tackle risks and challenges. ASEAN will not concede to any unilaterally imposed tariffs, and will seek greater strength and maintain economic growth through unity and cooperation.”
The two sides signed 30 agreements, covering areas such as cooperation on the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative, Confucianism-Islam dialogue, the digital economy, trade in services, upgrading of ‘Two Countries, Twin Parks’, joint laboratories, artificial intelligence, railway, intellectual property rights, export of agricultural products to China, mutual visa exemption, and giant panda conservation.
They also issued a joint statement (English text). There’s a lot in there around different sectors, university exchanges, think tanks, joint laboratories, etc. I am focussing below on select points that I found noteworthy:
Both sides reiterated their firm mutual support on issues concerning each other’s core interests and major concerns of each other…
The two sides firmly support each other in safeguarding national sovereignty, security and territorial integrity, and making efforts to promote national unity, stability, development and prosperity. Malaysia reiterates its firm commitment to the One China Policy, as per the Joint Communique signed by the leaders of both countries on 31 May 1974. Consistent with the One China Policy, Malaysia recognises the Government of the People's Republic of China as the sole legal government of China, Taiwan is an inalienable territory of the People’s Republic of China, and in order for China to achieve national reunification, will not support any call for the independence of Taiwan.
Both sides agreed to establish the Joint Foreign and Defense Dialogue Mechanism to further expand channels for high-level strategic communication and platforms for political security cooperation.
Both sides agreed to improve and make good use of the cooperation mechanisms for national security, defense and law enforcement, and carry out more exchanges and cooperation in fields such as joint exercises and training, exchange visits, and courses for officials. Both sides reiterated their opposition to any form of terrorism, and will jointly combat transnational crime to contribute to regional peace and stability.
Focusing on four key areas of digital economy, green economy, blue economy and tourism economy, the two sides will expand future economic cooperation, promote integrated, coordinated and complementary development, achieve deep integration of industrial and supply chains, value chains, data chains and talent chains, so as to further improve the level and quality of China-Malaysia cooperation.
Both sides agreed to jointly build a safe and stable industrial and supply chain and strengthen cooperation in this regard. Both sides will encourage two-way investment and strengthen exchanges and cooperation in areas of high value high growth (HVHG) industry such as manufacturing, intellectual property, digital economy, research and innovation, green and sustainable investment and logistics development. This strategic focus will attract quality investments, accelerate technology adoption, and strengthen Malaysia’s role in global supply chains.
Both sides will jointly explore cooperation on new quality productive forces, create new growth points in cutting-edge areas such as advanced manufacturing, artificial intelligence and quantum technology, deepen smart city cooperation, and strengthen the integrated development of industrial and supply chains. The Malaysian side welcomes Chinese enterprises to participate in the construction of Malaysia’s 5G network. Both sides look forward to explore potential cooperation in the semiconductor industrial chain to the extent practicable to maintain the stability of the industrial and supply chains.
The two sides will explore and promote cooperation on rail equipment, aerospace and nuclear power, support Malaysian airlines in introducing and operating Chinese commercial aircraft, and facilitate the industrial upgrading and energy transformation of each other.
Both sides emphasised the importance of maintaining peace, security and stability in the South China Sea, agreed to resolve disputes by peaceful means, through friendly consultations and negotiations, in accordance with the universally recognised principles of international law, including the 1982 United Nations Convention on the Law of the Sea. Both sides further emphasised the need for all parties to exercise self-restraint in the conduct of activities, and to avoid actions that would complicate or escalate tensions in the South China Sea. Both sides recognized that the involvement of parties not directly concerned could be counter-productive. Both sides will work together with other ASEAN countries to fully and effectively implement the Declaration on the Conduct of Parties in the South China Sea (DOC) in its entirety and look forward to the conclusion of an effective and substantive Code of Conduct in the South China Sea (COC) in 2026, as indicated in the Guidelines for Accelerating the Early Conclusion of an Effective and Substantive COC, towards building the South China Sea into sea of peace, friendship and prosperity. Both sides recognised that maritime cooperation is an important component of the Comprehensive Strategic Partnership between China and Malaysia. Both sides highly appreciated the progress made in the official launch of the Bilateral Dialogue on the Management of Maritime Issues in the South China Sea, and look forward to keeping close communication and coordination to foster more highlights of maritime cooperation. The two sides will explore opportunities for cooperation in the field of maritime science and technology, and continue discussions on renewal and signing of the agreements to further enhance collaboration.
Malaysia supports Hong Kong’s accession to RCEP.
China appreciated Malaysia’s initiatives such as ASEAN-China-Gulf Cooperation Council (GCC) Cooperation Summit, which embody open regionalism that is conducive to international and regional economic and financial stability and coordinated development among different regions in Asia. Malaysia looks forward to high-level participation from China to the Summit.
China welcomes Malaysia as a BRICS partner country and is willing to actively support Malaysia in better integrating into BRICS cooperation.
Malaysia welcomes China’s application to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and reiterates that the CPTPP remains open to accession by economies that can satisfy the Auckland Principles.
Okay, now let’s look at the Q1 data that was released yesterday. Key data points:
Q1 GDP growth was 5.4% year on year.
The total value added of industrial enterprises above the designated size grew by 6.5% year on year in the first quarter, 0.7 percentage points faster than that of 2024.
Value added of mining increased by 6.2%, manufacturing increased by 7.1%, and that of production and supply of electricity, heat power, gas and water increased by 1.9%. The value added of equipment manufacturing increased by 10.9%, 3.2 percentage points faster than that of 2024.
The value added of high-tech manufacturing increased by 9.7%, 0.8 percentage points faster.
The production of new energy vehicles, 3D printing devices and industrial robots grew by 45.4%, 44.9% and 26.0% year on year, respectively.
In March, the Manufacturing PMI stood at 50.5 percent, 0.3 percentage points higher than that of the previous month. The Production and Operation Expectation Index was 53.8%.
China’s service sector grew by 5.3% year on year, 0.3 percentage points faster than that of 2024.
Total retail sales of consumer goods reached 12.4671 trillion yuan, up by 4.6% year on year, 1.1 percentage points faster than that of 2024.
Fixed Assets Investment reached 10.317 trillion yuan, up by 4.2% year on year, 1.0 percentage point faster than that of the previous year; the investment in fixed assets was up by 8.3% with the investment in real estate development deducted. Investment in infrastructure grew by 5.8% year on year; manufacturing grew by 9.1%; and real estate development declined by 9.9%.
Private investment went up by 0.4%. Deducting the investment in real estate development, the private investment grew by 6.0%. The investment in high-tech industries grew by 6.5% year on year, of which the investment in information services, aerospace vehicle and equipment manufacturing, computer and office device manufacturing and professional technical services grew by 34.4%, 30.3%, 28.5% and 26.1%, respectively.
CPI dropped by 0.1% year on year.
Urban surveyed unemployment rate averaged 5.3%
Finally on the front page, there’s a report on Ding Xuexiang’s visit to Shaanxi Province from Monday to Wednesday. Li first visited the Chint Intelligent Electric Northwest Industrial Park, LONGi Green Energy Technology Co., Ltd., and the Northwest Institute for Nonferrous Metal Research.
Ding said that “a complete industrial system is an advantage of China’s economic development and also the confidence for coping with various risks and challenges. It is necessary to strengthen innovation-driven development, promote the integrated development of scientific and technological innovation and industrial innovation, cultivate and expand emerging industries and future industries, promote the transformation and upgrading of traditional industries, and accelerate the construction of a modernised industrial system. Maintain a fair and orderly market order and prevent ‘involution-style’ competition. Support the development of new-type research institutions, strengthen applied basic research and the research and development of generic industrial technologies, and provide strong support for industrial development.” 丁薛祥前往正泰智能电气西北产业园、隆基绿能科技股份有限公司和西北有色金属研究院，调研企业生产经营、产业转型升级等情况。他表示，产业体系完备是我国经济发展的优势，也是应对各种风险挑战的底气。要强化创新驱动，推动科技创新和产业创新融合发展，培育壮大新兴产业和未来产业，推动传统产业改造提升，加快建设现代化产业体系。维护公平有序市场秩序，防止“内卷式”竞争。支持新型研究机构发展，加强应用基础研究和产业共性技术研发，为产业发展提供有力支撑.
Visiting a couple of universities, he said that “it is necessary to give full play to the role of universities as the main force of basic research and the source of major scientific and technological breakthroughs, strengthen key core technology research, and better meet the needs of national strategies. Respect and make use of market laws, deepen the reform of the mechanism for transforming scientific and technological achievements, increase support for venture investment, and accelerate the formation of real productive forces and the development of new growth drivers. Attach great importance to vocational education, promote the integration of vocational and general education, and the integration of industry and education, to cultivate a large number of great country craftsmen and high-skilled talents. Do a good job in employment guidance and services, help graduates choose jobs better and find employment faster, and realise the value of life in the service of national development.” 丁薛祥来到西北工业大学、陕西工业职业技术学院，调研教育科技人才一体发展工作情况。他强调，要发挥高校基础研究主力军和重大科技突破策源地作用，加强关键核心技术攻关，更好满足国家战略需要。尊重和运用市场规律，深化科技成果转化机制改革，加大创业投资支持力度，加快形成现实生产力、发展新动能。高度重视职业教育，推进职普融通、产教融合，培养一大批大国工匠和高技能人才。做好就业指导服务，帮助毕业生更好择业、更快就业，在服务国家发展中实现人生价值.
Ding then visited the Samsung (China) Semiconductor Co., Ltd. and the Xi'an assembly centre of the China-Europe Railway Express. He said that “opening up to the outside world is China’s basic national policy; the stronger the countercurrent of protectionism, the stronger our determination to expand opening up. Tariff wars and trade wars do not have popular support. China is willing to deepen cooperation with all parties, strengthen complementary advantages, and achieve mutual benefit and win-win results.” 他指出，对外开放是中国的基本国策，保护主义逆流越强烈，我们扩大开放的决心越坚定。关税战、贸易战不得人心，中国愿同各方深化合作，加强优势互补，实现互利共赢。
Finally, at a symposium, he said that it was essential to “comprehensively expand domestic demand, help foreign trade-related enterprises overcome difficulties, make greater efforts to stabilise employment, and respond forcefully and effectively to external shocks.” 全方位扩大国内需求，帮助涉外贸企业渡过难关，更大力度稳定就业，有力有效应对外部冲击.’
Page 3: There’s a report on He Lifeng’s visit to Guangdong during the Canton Fair. He called to “further increase support for stabilising foreign trade, cultivate new driving forces for foreign trade, encourage the expansion of international economic and trade cooperation, and work together to build an open world economy.” 何立峰强调，要认真学习贯彻习近平总书记重要指示精神和党中央、国务院决策部署，进一步加大稳外贸支持力度，培育外贸新动能，鼓励拓展国际经贸合作，为建设开放型世界经济共同努力.
“He Lifeng pointed out that China has a complete range of manufacturing industries and strong industrial supporting capabilities; all kinds of products are high-quality and competitively priced, providing buyers with abundant choices. China has a super-large-scale market and huge consumption potential, offering broad space for the import of high-quality products from various countries. China is actively advancing high-level opening-up, creating a first-class business environment, and with its macroeconomic long-term positive outlook, it is always fertile ground for investment and business, and a trustworthy trade partner. Foreign trade enterprises are encouraged to make good use of the Canton Fair platform to fully showcase China’s brands, products, technologies, and supply chain advantages, make full use of foreign trade stabilisation policies, and actively explore diversified markets. It is hoped that purchasers from various countries will continue to be ‘fellow travellers’ in China’s economic transformation and upgrading, ‘promoters’ of investing in China, ‘aligners’ of international and Chinese economic and trade rules, and ‘facilitators’ of friendly exchanges between China and other countries, to share in the opportunities of China’s open development. 何立峰指出，中国制造业门类齐全，产业配套能力强大，各类商品质优价廉，为采购商提供了丰富的选择。中国有超大规模市场和巨大消费潜力，为各国优质产品进口提供了广阔空间。中国正在积极推进高水平对外开放，营造一流营商环境，宏观经济长期向好，始终是投资兴业的沃土和值得信赖的贸易伙伴。鼓励外贸企业利用好广交会平台，充分展示中国品牌、产品、技术和产供链优势，用足用好稳外贸政策，积极开拓多元化市场。希望各国采购商继续做中国经济转型升级的“同行者”、投资中国的“推动者”、中外经贸规则的“对接者”、中外友好交流的“促进者”，共享中国开放发展机遇.