A Chinese government official has confirmed that Malaysia will purchase four naval gunboats from the communist country and have also finalized an agreement that will see Malaysia settle disputes in the South China Sea bilaterally.
Many experts see the move as an effort by China to counter United States influence in the region and reassert their dominance over what they see as their national waters.
The small crafts, known as littoral mission ships, will be manufactured in both countries according to Malaysian state media. The announcements followed a visit by Malaysian premier Najib Razak to China where he met with his counterpart Li Keqiang.
Tensions have been rising in the region and the deal is Malaysia’s first defence deal with the Chinese.
“The deal shows how close relations have become between our two nations,” said Liu Zhenmin, Chinese Vice Foreign Minister. “It’s important for international partners to handle disputes with one mind as we move forward and there will be more meaningful dialogue once we come to agreements like this with other Asian nations. We want to make more military bilateral ties; it’s a sign of mutual trust.”
Officials from both countries were not forthcoming with further details on the gunboat deal.
Over $5 trillion worth of trade is carried up and down the strategically important South China Sea every year, and China claims the waterway as its own national territory. However, many nations also have rival claims to certain areas of the sea and tensions have recently been coming to a boiling point, especially between China and Vietnam.
“A lot of the political manoeuvring has come after recent U.S allegations involving the Malaysian prime minister concerning money laundering,” said Zheng Longwei, Chief Executive Officer at Beijing-based investment firm CTI China Renaissance. “We have also seen Filipino president Rodrigo Duterte announce a separation from the United States and even demand all their military forces leave the country. He has also drafted several memorandums encouraging Chinese investment into the Philippines. We are seeing a titling of allegiance in the region for sure.”
Further agreements between China and Malaysia are expected to be formulated in the next few months, with Chinese firms winning contracts to build new infrastructure, especially rail lines with Malaysian company East Coast Rail. The deals are thought to be worth in excess of $30 billion.
