THE fallout from Malaysia’s cancellation of two major China-backed projects appears to have been contained with the Chinese Ministry of Foreign Affairs saying that it will not hinder future bilateral trade and economic relations, reports the Global Times.

Prime Minister Dr Mahathir Mohamad yesterday announced in Beijing the cancellation of the multi-billion-ringgit East Coast Rail Link and the two pipeline projects awarded to Chinese firms.

Chinese President Xi Jinping was said to have agreed with Putrajaya’s decision to nix the projects because of the government’s fiscal position.

Both leaders “affirmed that however the situation may evolve, (the two countries) will always hold friendly policies towards each other”, said Lu Kang, the Ministry of Foreign Affairs spokesman, yesterday.

Lu was commenting at the end of Dr Mahathir’s four-day visit to China.

“China and Malaysia enjoy profound historical ties. The two countries are comprehensive strategic partners as well as partners of practical cooperation,” he said.

Beijing and Putrajaya also agreed to forge “new landscapes” and encourage two-way investment.

The ministry said the two countries signed several bilateral agreements, including agricultural and financial ones.

Dr Mahathir also backed China in the trade war against the United States following President Donald Trump’s tariff hikes.

“The two countries will jointly champion multilateralism, oppose trade protectionism and unilateralism, uphold the purposes and principles of the UN Charter and the WTO-centred multilateral trading regime,” Lu added. – August 22, 2018.