ABSTRACT
The People's Republic of China (PRCs) impressive economic growth has been linked to Beijing's strengthening international profile, in league with the People's Liberation Army (PLAs) expanded military might. Malaysia has also experienced stable economic growth, not withstanding external negative factors such as the financial crash in 1997 and the global financial crisis of 2008. Chinas growth has catalyzed sustainable development in Association of Southeast Asian Nations (ASEAN) economies, and has therefore enhanced the economic integration between Southeast Asia and China. The rapid economic development experienced in both Malaysia and the PRC was, in part, brought about by the mutual trade agreements for commodities and manufactured goods. In May 1974, the government of Malaysia's Prime Minister Tun Abdul Razak Hussein established formal diplomatic ties with the People's Republic of China PRC. The PRC and Malaysia have adopted a constructive approach to resolve outstanding problems, including overlapping claims and the determination of land and maritime boundaries.
