Linyi deepens trade ties with Malaysia under RCEP framework

(chinadaily.com.cn)| Updated : 2025-04-25

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Linyi is a major manufacturing and trading hub in China's Shandong province. As the benefits of the Regional Comprehensive Economic Partnership (RCEP) continue to emerge, the city is expanding cooperation with Malaysia, seeking deeper integration into regional supply chains and markets.

At the recent ASEAN-China Media and Think Tank Forum in Kuala Lumpur, a report titled "RCEP and the Vision of the Maritime Silk Road: New Frontiers for China-ASEAN Cooperation" was released, highlighting new cooperation space between China and ASEAN. Building on this momentum, the third Malaysia Linyi Small Commodities Exhibition is scheduled for the end of April, with local businesses ramping up preparations. A recent forum in Linyi also discussed how financial policies can support enterprises in expanding globally.

Malaysia has become an increasingly attractive destination for Linyi's industries. For instance, Shandong New Continent Tire plans to launch a radial tire production project there, while Shandong Lingong Construction Machinery (SDLG), recently delivered 18 units of smart construction equipment to support Malaysian infrastructure projects — signaling a shift from simple exports to integrated solutions.

Beyond machinery and tire manufacturing, Linyi's wood industry is also making inroads into the Malaysian market. At Southeast Asia's largest furniture expo last month, 52 wood enterprises from Linyi secured orders worth over 100 million yuan ($13.74 million). One company from Feixian county, venturing abroad for the first time, plans to set up a wood sales warehouse in Malaysia, targeting markets in Singapore, New Zealand, and Indonesia.

Linyi's presence in Malaysia also extends to the traditional Chinese pharmaceuticals. The honeysuckle flower, widely grown in Linyi's Pingyi county, is a key ingredient in herbal drinks such as Wong Lo Kat. Over a decade ago, Guangzhou Pharmaceutical Holdings Ltd (GPHL) established a plant in Pingyi. In April, GPHL announced plans to build a diversified supply chain for Southeast Asia, marking its entry into the Malaysian market.