The China-Malaysia Free Trade Agreement (FTA) is a significant milestone in the economic relationship between the two countries. It was signed on November 23, 2020, after nine years of negotiations and marks China`s first FTA with a Southeast Asian country.
The agreement aims to promote trade liberalization, enhance economic cooperation, and deepen bilateral ties. Under the FTA, both countries will remove tariffs on a wide range of goods, including agricultural products, manufactured goods, and services. This means that Chinese and Malaysian businesses will have a level playing field, making it easier for them to do business with each other.
The FTA also includes provisions for intellectual property rights (IPR), e-commerce, and investment protection. These provisions are critical to ensuring that businesses can operate in a secure and predictable environment.
The FTA is beneficial for both China and Malaysia. China is Malaysia`s largest trading partner, and the FTA will further strengthen this relationship. The agreement will also help Malaysian businesses to access China`s vast market, which can provide new opportunities for growth and expansion. Additionally, the FTA will help to diversify Malaysia`s export markets, reducing its reliance on traditional export markets such as the United States and Europe.
Overall, the China-Malaysia FTA is a significant development in the global trade landscape. It marks a new chapter in the relationship between China and Southeast Asia, and reinforces the importance of regional economic integration. By removing barriers to trade and investment, the FTA will create new opportunities for businesses and benefit consumers in both countries. As China and Malaysia continue to work together, the FTA is likely to provide lasting benefits to the economies of both countries.