'Properly handle it': China warns Malaysia over trade deal with Trump

China has lodged a complaint with Malaysia about the so-called "reciprocal" trade deal signed by Prime Minister Anwar Ibrahim and President Donald Trump on Oct 26, Bloomberg reports.

Beijing has expressed “grave concerns” about the deal, which has sparked public outrage in Malaysia over provisions obliging Malaysia to become a direct participant in US economic conflicts.

"We hope Malaysia will fully consider and properly handle this matter in light of its long-term national interests," Chinese Ministry of Commerce said in a statement, as quoted by Bloomberg.

Officials from the Ministry of Investment, Trade and Industry, or Miti, have "explained and clarified the issues of China’s concerns".

Beijing has previously warned countries against signing agreements that undermine its interests.

Malaysia's commitments in the agreement with the US include a promise to supply unlimited mineral resources to the US, ease restrictions on American products, and accept US consumer standards for the food and pharmaceutical sectors.

The agreement also states that if Washington imposes sanctions or tariffs on third countries on grounds of national security, Malaysia must uphold them.

Experts said the conditions undermine the independence of Malaysia's international trade policies, as well as the trust of major trading partners such as China.

"China also invests a lot here. We have always been a trading nation, from the time of Melaka until now. We trade with everyone and have never sided with any power," economist Muhammed Abdul Khalid said recently.

"But now, how will we remain neutral if we have already taken sides? Our other friend (China) is far bigger, richer, and more influential in this region than the US.

"If China sees us as going to the other side, what will they do? They will lose all trust in us."