FINALLY, the prime minister has made his first official visit to China 100 days after the new Pakatan Harapan government was formed.

Indeed, the visit was made at the right time since the nation is facing challenges to sustain economic growth. 

As a person who has vast experience, Dr Mahathir Mohamad knows full well the importance of having warm relations with China even though it a few controversial Malaysian mega-projects with state-backed Chinese participation have been suspended.

The fact remains Malaysia is a country that is built for business and trade. Despite its relatively small population, Malaysia has a dynamic economy, a skilled and educated workforce and it is situated at the crossroads of strategically important trading routes.

With that in mind, Malaysia should retain its friendship with all countries and continue with its neutral stance when it comes to dealing with superpowers.

Meanwhile, there are at least two the visit is so important for Malaysia. First, the recent attempt by the European Union to ban palm oil biofuels has potential to undermine the palm oil industry and reduce exports values.

In this situation, China is seen as a “substitute market” to safeguard the industry since Beijing has imposed retaliatory action against soybeans products from the US in the tariff war.

On top of that, the recent action by the US to impose unilateral action against other countries should sound the alarm to reduce our reliance on the American economy.

It is crucial to avoid economic destabilisation resulting from such unwarranted claims by the US. It so happens in Turkey last week after the White House imposed tariffs on Turkish steel and aluminium. The Turkish lira plunged almost 90%, resulting in economic chaos. 

In view of this, it is right time for Malaysia to continue warm diplomatic ties with China to sustain growth without compromising our national interests. – August 20, 2018.

* Ahmad Shahir Abdul Aziz reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.