Chinese president Xi Jinping and former Malaysian prime minister Najib Razak thought they had devised the perfect “win-win” deal. Beijing pledged tens of billions of dollars in loans and investments to support Malaysia’s economy and Mr Najib promised to roll out Chinese rail and port developments, as other “Belt and Road” projects stalled across south-east Asia.
But the Malaysian people got in the way, last week voting out the ruling party headed by Mr Najib for the first time in 60 years, in part because of accusations that their graft-tainted leader was selling out the country.
Riding the wave of anger at Mr Najib, new premier Mahathir Mohamad has promised to review all Chinese projects and renegotiate any “unequal treaties”, threatening to destroy Malaysia’s image as poster child for Mr Xi’s Belt and Road policy and upset China’s position in the country, a strategic crossroads for Asia.