Malaysia welcomed Chinese Premier Wen Jiabao on Wednesday for an official visit expected to focus on Chinese investments and a territorial dispute in the South China Sea.
Mr. Wen wants to discuss boosting China’s infrastructure investments in Malaysia and Indonesia, he said in an interview with media from both countries on his Southeast Asia trip. The investment projects include a Malaysian bridge and a paper mill on Borneo island.
According to Malaysia’s foreign ministry, bilateral trade with China totalled $45.66 billion in 2010. Mr. Wen is scheduled to meet on Thursday with Malaysian Prime Minister Najib Razak, speak to business leaders and witness the signing of an agreement on student exchange programmes.
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Malaysian Deputy Prime Minister Muhyiddin Yassin has said the leaders are also expected to discuss the overlapping territorial claims in the South China Sea.
China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam claim in whole or in part the Spratlys, a group of islands, reefs and atolls believed to be sitting atop vast oil and gas reserves.
Mr. Wen told Malaysian media in Beijing that he believes countries should cooperate to develop resources in the South China Sea, which is “in the interest of regional peace.”
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He also reiterated China’s position that territorial claims and maritime rights are best handled through bilateral channels, not multilateral forums.
U.S. Secretary of State Hillary Rodham Clinton said last year the peaceful resolution of the territorial dispute was in the American national interest, but Beijing has called that interference in an Asian regional issue.
Washington is concerned about access to one of the world’s busiest commercial sea lanes.
Mr. Wen and a 118—member delegation will leave on Thursday for Indonesia, where he plans to meet President Susilo Bambang Yudhoyono and attend an economic forum.