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China and Malaysia study economic pact
(China Daily)
Updated: 2005-12-16 05:59

KUALA LUMPUR: China and Malaysia yesterday agreed to conduct a feasibility study on an Economic Partnership Agreement (EPA) to strengthen economic co-operation.

The plan was included in a joint communique released after talks between Premier Wen Jiabao and his Malaysian counterpart Abdullah Ahmad Badawi.

The communique highlighted bilateral economic ties while pledging efforts towards co-operation in the fields of energy, health care, food security, education, culture and national defence.

The two countries "will continue to expand bilateral trade and mutual investment, vigorously push forward trade and investment liberalization and facilitation, and strive to increase bilateral trade to US$50 billion a year by 2010," the communique said.

It described the feasibility study on the EPA as "an effort to promote the long-term development of China-Malaysia trade and economic co-operation."

Malaysia is China's eighth largest trade partner, with bilateral trade reaching US$26.26 billion last year.

Meanwhile, trade between China and the Association of Southeast Asian Nations (ASEAN), of which Malaysia is a member, stood at US$117.24 billion in the first 11 months this year.

The EPA plan is believed to be part of the efforts to set up a free trade area (FTA) between China and the ASEAN. China and the Southeast Asian bloc have agreed to form an FTA by 2010 but no institutional framework has been announced to date.

As a sign of stronger mutual trust, the communique said "Malaysia welcomes China's participation in security co-operation in the Malacca Strait," through which 80 per cent of China's oil imports pass.

Malaysia agrees to discuss with China the form of security co-operation such as intelligence exchanges and sharing; and welcomes the contribution of China, as a main user of the Malacca Strait, to security in the Strait, according to the communique.

During their talks held in Putra Jaya, Malaysia's administrative centre located some 30 kilometres west of Kuala Lumpur, Wen and Badawi pledged to deepen strategic and co-operative relations.

"China is willing to closely co-operate with Malaysia in promoting East Asia co-operation," Wen said.

Badawi said the continuous deepening of bilateral relations between Malaysia and China has brought about mutual benefits.

China Daily - Agencies

(China Daily 12/16/2005 page1)



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