Currency, technology agreements inked with Malaysia

China and Malaysia signed several cooperative agreements including a currency deal on Monday, while Premier Li Keqiang and his visiting Malaysian counterpart, Prime Minister Mahathir Mohamad, looked on.

A currency swap - the exchange of principal and interest in one currency for the same in another - of 180 billion yuan ($26 billion) will be valid for three years and can be extended with both sides' permission, said the People's Bank of China, the central bank. Other agreements covered agricultural products such as palm oil fuel research and technological cooperation.

China is ready to better align the Belt and Road Initiative with Malaysia's development strategies, promote cooperation in industrial parks and strengthen ties in investment, agriculture and transportation, said Li in a meeting with the 93-year-old Mahathir in Beijing.

The premier also said China encourages capable companies from both countries to expand two-way investment, and China would like to import more high-quality Malaysian products suited to its domestic demand.

Facing rising unilateralism and trade protectionism, China is willing to work with Malaysia and other ASEAN countries to safeguard multilateralism and free trade, Li added.

Mahathir confirmed that the new Malaysian government will continue pursuing friendly policies toward China and deepen bilateral cooperation in trade and other economic areas. He said that Malaysia actively supports the initiative, which is beneficial to enhancing connectivity and trade.

A stable China-Malaysia relationship not only benefits his country but also regional and global peace, stability and prosperity, Mahathir said, adding that Malaysia wants to export more goods to China and welcomes investment by Chinese companies.

When meeting with journalists, Li said both countries agreed to promote more balanced trade while expanding overall trade volume and exploring new cooperation in e-commerce, traditional industries and technological innovation.

The premier said the two countries agreed to strengthen their partnership in trade, innovation-driven growth and industrial cooperation to achieve win-win outcomes. The two countries also are committed to building the East Asian economic community and supporting ASEAN's core status in regional cooperation, jointly sending a positive signal of long-term friendship between the two countries and maintaining regional stability and development, Li said.

Mahathir said his country wants to learn from China in areas including business startups and innovation, and improve ties in e-commerce and innovation. As Asian neighbors, the two countries should support globalization and safeguard an open, free and fair international economic system, he added.

In a joint statement released late on Monday, the two countries decided to set 2020 as the China-Malaysia Tourism Year.

Mahathir wraps up his five-day official trip to China on Tuesday, after visits to Hangzhou, Zhejiang province, and Beijing.