Malaysian Prime Minister Mahathir Mohamad recent current visit to China has shown a stark contrast to his earlier tough stance towards Beijing.
Since his campaign for 2018 election, he has spoken harshly about Chinese investment in his country that he sees as through his predecessor and student, former PM Najib Razak as hurting Malaysia’s sovereignty by signing multibillion-dollar deals with China.
However, on his recent visit Mahathir is quoted for saying that Malaysia has no intention to oppose China. Adding that he oppose the Malaysian government particularly the Najib administration that has taken a huge number of Chinese loans in return giving up of Malaysia’s sovereignty, especially Malaysia’s claim in the South China Sea. Beijing also received Mahathir as an ‘old friend’ and praising his support for the One Belt and Road Initiative (BRI) to revive the old silk road. Najib is now awaiting trial for alleged corruption in regards to the 1 MBD scandal and is also believed to have embezzled Chinese loans.
Mahathir’s move is not of a surprise. Not long after his phenomenal victory with the Pakatan Harapan that knocked out the long incumbent Barisan Nasional-which is led by his former party UMNO-he invited Jack Ma, a famous Chinese businessman and Malaysia’s digital economy adviser, for talks in his office. The resulting talks reported by Ma to be positive.
However, in July, Mahathir suspended two China-backed projects East Coast Rail Link worth over $22 billion which was approved by Najib. It is believed to be part of Najib’s corruption scheme in the project.
In an interview with CNN, he was quoted for saying that he accepted the reality that China’s dominant economic influence in Southeast Asia and going to war with China is risky. And thinks what is best for Malaysia is to find a way to gain benefit from China’s wealth and power.
To understand the move we need to understand Mahathir’s foreign policy rhetoric. Mahathir’s foreign policy rhetoric is based on Malaysia’s sovereignty and prosperity. He has seen the encroachment of China’s soft power through its lucrative but deadly investment scheme in countries across the BRI plan.
Examples of countries that have fallen to so called “debt trap” has cast worries that Malaysia’s could be China’s next victim. It has been recorded that there are eight countries that are in danger of China’s debt trap. Srilanka has to rent a seaport to China for 99 years due to small revenues generated from the investment to pay back the interest.
Pakistan, a close ally of China and a big supporter of BRI, has tensions rising around the Chinese built Gwadar port towards Chinese nationals. Reports of Chinese nationals being killed by local militias that believe Islamabad is selling their land to foreign infidels might start an anti-China movement in Pakistan. In Southeast Asia, such violent movements are recognized by countries with a suficient number of Chinese minority, including Malaysia.
However, He understands that Malaysia needs foreign investment and a huge market to export their natural resources, especially the palm oil trade. And Malaysia’s biggest trading partner and source of foreign direct investment is China. Simply falling into the anti-China movement will no doubt bring more pain to the country instead of securing Malaysia’s economy, as it is risky to severe one of Malaysia’s biggest export destination and investment source. China’s BRI is also seen by Mahathir as a boost towards Malaysia’s economy as it geographically sits beside the Malacca Strait the busiest sea trade route on earth and historically the past kingdoms of Malaysia gain its wealth from this ancient silk route too with Chinese traders as one of the main customers.
Instead of blaming China and fully oppose them, Mahathir decided to use the same method his mentor, Tun Abdul Razak, once used against China: reason with them. Back in the 70s, in order to end Chinese support towards Malaysia’s communist rebels that had plagued the land for more than 12 years. The result of the meeting comes with an agreement that China will no longer support the rebels, in return Malaysia has to acknowledge the Beijing government as the legitimate government of China and maintain diplomatic relation. The event has taught them that the Chinese can be reasoned with.
This explains why even China’s president, Xi Jinping, allows Mahathir suspending two China’s project. It could be understood that every superpower in the world needs allies in order to help its influence in check. China is no different if it wants to be a superpower, it needs an ally to win support in order to become a new superpower to challenge the US dominance, especially in Southeast Asia. For them losing a few million dollars is worth than losing a potential friend.
Also, Beijing is aware of this debt trap that could threaten the success of the BRI. It needs a poster country to prove that the project is running and developing the recipient country. If not, more countries are getting weary of this mega project not giving any profit to their own respective country. Another Pakistan, will add more headache to Beijing and change its image as an alternative development source than western powers towards the local population.
In conclusion, Mahathir’s rhetoric is something developing countries should learn in order to gain benefits from China’s investments. Najib’s alleged corruption is also a lesson that corruption doesn’t sees nationality or even race. A full understanding of the situation is needed to know what went wrong, instead of blaming on someone else.