Chinese President Hu in Malaysia for bilateral talks
By Channel NewsAsia's Malaysia Bureau Chief Melissa Goh | Posted: 11 November 2009 0045 hrs

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KUALA LUMPUR: Chinese President Hu Jintao arrived in Malaysia on Tuesday on a brief visit, before heading for the APEC summit in Singapore.

President Hu is the first Chinese leader to visit Malaysia in 15 years. Marking a major milestone in bilateral relations, his visit comes as both countries celebrate their 35th anniversary of diplomatic ties.

Prime Minister Najib, who will hold talks with President Hu on Wednesday, said he wants bilateral relations to move further and faster.

China is seen as an economic powerhouse, with its economy expected to grow more than 8 per cent this year, despite the global downturn.

A series of trade deals will be signed on Wednesday, followed by a joint media conference. It is expected to cover a wide range of areas - from trade and investment, transportation, water services, energy as well as education.

There are also strong rumours that the Industrial and Commercial Bank of China (ICBC) will be given a banking licence to operate up to four branches in Malaysia in 2010. However, officials from both sides are staying tight lipped about the matter currently.

Both countries agree that there is plenty of room for growth. China is already Malaysia's top trading partner. In 2008, bilateral trade between the two countries amounted to nearly US$40 billion - the bulk of it coming from electrical and electronic products, and commodities.

Going forward, Prime Minister Najib wants to widen that base and Malaysia wants to sell more to China.

Moreover, Malaysia wants to woo China's investment - not just in banking and finance, but also in construction, engineering and other services.

- CNA/sc