Seizing the momentum to deepen cooperation: CAEXPO propels the upgrading of China-Malaysia economic and trade integration

According to data from the General Administration of Customs of China, in the first two months of 2026, ASEAN continued to maintain its position as China's largest trading partner, with Malaysia ranking among the top within ASEAN member states. The China-ASEAN Expo (CAEXPO), serving as a "propeller" for the construction of the China-ASEAN Free Trade Area (CAFTA), has for many years consistently cultivated China-Malaysia economic and trade exchanges, injecting strong momentum into the building of a high-level strategic China-Malaysia community with a shared future.

High-level leadership jointly promotes new economic and trade development

The Malaysian government attaches great importance to deepening exchanges and cooperation with China through CAEXPO. Malaysia served as the Country of Honor for the 8th, 19th, and 21st CAEXPOs, and has sent high-level delegations to attend the expo annually, effectively facilitating the signing of landmark projects such as the China-Malaysia "Two Countries, Twin Parks" initiative and large-scale photovoltaic projects in locations like Terengganu and Pangkut. Several Malaysian states and cities, including Kuala Lumpur and Penang, have been featured as "Cities of Charm" at CAEXPO, further strengthening the bonds of economic, trade, and people-to-people exchanges at the sub-national level between the two countries.

In his speech at the opening ceremony of the 22nd CAEXPO, Yab Datuk Seri Haji Fadillah bin Haji Yusof, Deputy Prime Minister and Minister of Energy and Water Transition of Malaysia, stated that CAEXPO has developed into an important platform for promoting trade and investment, enhancing mutual trust, and strengthening regional connectivity, bringing tangible benefits to the people of ASEAN countries and China. He noted that for Malaysia, CAEXPO continues the more than half-century-long friendly relations between Malaysia and China, and the series of interactions bear witness to the shared vision of both sides to deepen cooperation in trade, investment, and innovation.

Innovation-driven transformation: Digital and intelligent empowerment opens new arena

At the 22nd CAEXPO, the Malaysian Pavilion drew bustling crowds, with specialty products such as Musang King durian, coffee, and bird's nest continuing their perennial popularity. Concurrently, several high-tech Malaysian enterprises, including MYEG Group and Global Communication Group, made appearances, collectively showcasing cooperative achievements between China and Malaysia in the field of artificial intelligence (AI), as well as Malaysia's new breakthroughs and emerging demands in this sector. This shift not only signifies the transformation of Malaysia's exhibition content from traditional industries to high-tech sectors but also signals that China-Malaysia cooperation is accelerating its transition from "conventional routes" to a "brand-new track" empowered by digital intelligence.

During CAEXPO, various Malaysian parties actively participated in a series of investment and trade promotion activities, driving cooperation to deepen from simple product transactions to the joint development of industrial and supply chains. The China-Malaysia "Two Countries, Twin Parks" Upgrade and Development & Cross-Border Industrial and Supply Chain Cooperation Promotion Conference was successfully held, calling on all parties to jointly build closer cross-border industrial and supply chains, promote trade and investment facilitation, strengthen the empowerment of industrial development through AI, and collectively advance the upgrade and development of the "Two Countries, Twin Parks" initiative. The Malaysia-China B2B Business Matching Session, held for seven consecutive years, focused on "Southeast Asian Specialty Agricultural Products," further consolidating consensus among enterprises and facilitating resource alignment. A series of pragmatic activities have propelled the two countries' cooperation to advance towards higher-level collaboration, including the co-construction of industrial and supply chains and innovation synergy, moving beyond primary product trade.

Seizing the momentum: Embarking on a new journey with CAFTA 3.0

In 2025, bilateral trade volume between China and Malaysia reached US$191.667 billion, marking China as Malaysia's largest trading partner for consecutive 17 years , thus laying a solid foundation for deepening bilateral cooperation. The year 2026 is not only the inaugural year of China's 15th Five-Year Plan but also the commencement year of Malaysia's 13th Malaysia Plan. It also marks the first CAEXPO to be held after the signing of the CAFTA 3.0 agreement. Multiple policy opportunities converge during this period, providing a crucial window for both sides to chart the direction of cooperation and capitalize on development dividends.

Currently, preparations for the 23rd CAEXPO are actively underway. The expo will closely align with the nine new areas of cooperation outlined in the CAFTA 3.0 agreement, including the digital economy, green economy, and cross-border industrial and supply chains. It aims to support initiatives such as "Shop in China," "Export to China," and "Invest in China," helping enterprises to capitalize on the vast markets of both China and ASEAN.

The CAEXPO Secretariat will comprehensively promote the new business opportunities arising from CAFTA 3.0 through various channels, including holding global roadshows and organizing enterprises to participate in overseas exhibitions. It will encourage the participation of high-quality Malaysian consumer goods and high-value-added exhibits, provide matching services for investment projects, and assist enterprises from both countries in integrating into cross-border industrial and supply chains. Furthermore, leveraging AI applications as a distinctive feature, the expo aims to empower economic and trade cooperation, contributing to Guangxi's development as a hub for AI cooperation oriented towards ASEAN. Standing at the new starting point of CAFTA 3.0, CAEXPO is advancing with higher-level open cooperation, continuously deepening and solidifying the construction of the China-Malaysia community with a shared future.