CHINA> Background
Sino-Malaysian trade relations
Updated: 2009-06-01 15:13

More than 10 agreements on economic and trade cooperation have been signed between the two countries such as Agreement on Avoidance of Double Taxation, Trade Agreement, Agreement on Investment Protection, Shipping Agreement and Air Transport Agreement. The joint committee of economy and set up in 1988 has convened 6 joint committee meetings.

The bilateral trade volume in 2002 reached US$ 14.27 billion, up 51.4% from the previous year, of which China's exports registered US$ 4.975 billion and its imports US$ 9.296 billion up 54.4% and 49.8% respectively. For the first time, Malaysia has become the biggest ASEAN trading partner for China.

With sound development of economic cooperation between the two countries, mutual investment has kept increasing. By the end of 2002, there had been 97 Chinese corporations in Malaysia approved by and registered in the Ministry of Foreign Trade and Economic Cooperation with their agreement investment reaching US$ 72.3 million in Malaysia and actual investment US$ 35.7 million. In 2002,there were 319 Malaysian projects in China with their contractual volume reaching US$ 0.79 billion, up 67.9% from 2001, and their actual volume US$ 0.37 billion, up 39.9% from the previous year.

In 2000, Bank of China and Bank of Malaya set up its own branch respectively in Kuala Lumpur and Shanghai. In October 20002, the Chinese People's Bank and the National Bank of Malaya signed the agreement on bilateral exchange of currencies.