Foreign and Military Affairs

Malaysia PM: China not indulging in power projection

By Chen Weihua (chinadaily.com.cn)
Updated: 2010-09-29 10:56

NEW YORK -- Malaysia does not see China as indulging in power projection but it does want to engage with major powers to achieve a balance in the region, according to Malaysian Prime Minister Datuk Seri Najib Tun Razak.

Najib said as a former defense minister, he believes China is not really indulging in power projection. “Its military buildup does not indicate it is moving in that direction,” the prime minister told a group of Council on Foreign Relations members on Tuesday.

Although "China has become more assertive than ever before, we believe China would not want to destabilize the region," said Najib, who was in New York for the 65th United Nations General Assembly meetings.

"There are mechanisms for us to undertake conflict resolutions with China because Chinese people tend to be quite pragmatic people. We believe we can work and consult with the Chinese," said Najib.

"China is a growing global power, and that is something inevitable that you have to come to terms with," he said.

Najib, who took office in April 2009, said he was not surprised by China's views on South China Sea since that is an area that contains a lot of hydrocarbon resources.

"In fact, all countries want to get a hand on hydrocarbon resources. It does not matter the size of a nation, people don't want to give up their potential rich hydrocarbon resources," he said.

He said ASEAN (Association of Southeast Asian Nations) wants to engage China as much as it wants to engage the United States. "We don't see the region is exclusive to one power. There must be a nice equilibrium, so the region will be a region of peace and stability," said Najib, whose father Tun Abdul Razak Hussein, the second prime minister of Malaysia, established diplomatic ties with China back in 1974.

In a meeting with Chinese Premier Wen Jiabao in Beijing last year, both said they would cooperate in resolving disputes over islands in South China Sea and develop closer trade relations.

The Malaysian prime minister seems more concerned about the rise in the region of the new economic powers of China, India and Vietnam, whose competitiveness has forced Malaysia to adjust its economy.

Malaysia is now China's largest trading partner in ASEAN. The free trade agreement between China and ASEAN, which took effect in January, has made ASEAN the fourth-largest trading partner for China, following the EU, the United States and Japan.

Just this month, Malaysia's central bank has become one of the first countries to buy renminbi-denominated bonds for its reserves, according to reports by the Financial Times newspaper. The move came after China allowed some foreign central banks to invest in its domestic bond market.

Najib is not optimistic about a free trade agreement between ASEAN and the US, citing that the US Congress has not even ratified the free trade agreement with South Korea. But he said ASEAN will continue to talk with the US about a free trade agreement. The US is Malaysia's third-largest trading partner after China and Singapore, according to Najib.

Najib, also Malaysia's finance minister, said Malaysia wants to become a developed nation by 2020, raising the per capita income to $15,000 from the current $7,000.

He is proud of Malaysia as a multi-racial and multi-religious nation, saying, "At the crossroad of the regional civilization, we have the unique advantage and can relate to China, India and the Middle East."