During a three-day visit to Malaysia, Chinese Premier Li Qiang announced China's plan to connect Malaysia's $10-billion East Coast Rail Link (ECRL) with other China-backed railway projects in Laos and Thailand, as reported by Business Times.

This could potentially expand Beijing's Belt and Road initiative across Southeast Asia. Li added that the proposed Pan-Asia Railway, running from Kunming in China to Singapore, would also aim to promote new international trade corridors and enhance regional connectivity.

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New China-Malaysia Agreement

Li's visit marks 50 years of diplomatic ties between China and Malaysia, during which he met with Malaysian Prime Minister Anwar Ibrahim, according to Al Jazeera. The two leaders signed over a dozen pacts, renewing a five-year program for collaboration in trade, investment, agriculture, manufacturing, infrastructure, and financial services.

In fact, at a ground-breaking ceremony for the ECRL, a 665-km railway linking Malaysia's east and west coasts, Li emphasized the project's role in building the ASEAN community.  Malaysia is considering extending the project to its border with Thailand, aiming to complete the railway by 2026.

In addition to new rail networks, China also agreed to import fresh durian from Malaysia pending sanitary approvals and to review expiring visa-free travel arrangements. 

China, Malaysia's largest trading partner since 2009, saw total trade valued at $98.9 billion in 2023.

However, amid ongoing US-China rivalry, Anwar pledged Malaysia's neutrality, citing China as an important trading ally and criticizing Western "China-phobia." 

Both leaders also agreed to resolve South China Sea disputes independently.

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