In One Nation, Anger Over U.S.’s Gaza Policy Opens Door Wider for China
Malaysia’s prime minister has criticized what he sees as U.S. failure to prevent suffering in Gaza, and praised China’s approach to foreign affairs
KUALA LUMPUR, Malaysia—When veteran politician Anwar Ibrahim became Malaysia’s prime minister two years ago, his victory was seen as a potential boon for the U.S. Anwar was known as a staunch supporter of democracy who understood Washington, where he worked as an academic for a couple of years in the 2000s.
Instead the U.S.’s relationship with Malaysia—a key node in the semiconductor supply chain—has grown rockier. Washington’s support for Israel’s war in Gaza has sparked widespread anger in the Muslim-majority country. Even as U.S. tech firms build chip factories in Malaysia, American consumer brands such as Starbucks and McDonald’s are battling boycotts and say their outlets have been vandalized.
Anwar has openly criticized what he sees as U.S. failure to prevent suffering in Gaza. At the same time, he has strengthened his country’s ties with China.
In a speech during a June visit by Chinese Premier Li Qiang to Malaysia, Anwar rejected what he called “incessant propaganda” that Malaysians should fear China’s military and economic might, saying: “I sense the attitude of the Chinese leadership—friendly, courteous, full of respect, understanding of cultures and differences.”
“This is not what is being portrayed elsewhere,” he said.
Like many countries in the developing world, Malaysia is also eager to maintain close economic ties with the U.S. Anwar has said that despite their differences, the two sides remain friends. But public sentiment over the Gaza conflict is presenting deep challenges for U.S. interests—and giving China an opening.
In a poll of 8,000 people in 16 Arab nations released this year, 76% said their views on the U.S. had become more negative since the Gaza war began. More broadly, in 29 out of 34 countries surveyed by Pew Research Center this year, people were more likely to disapprove of President Biden’s handling of the Gaza war than support it. People in Muslim-majority countries, Western Europe and Latin American countries such as Mexico and Chile were some of the most critical.
“China is using the issue to bleed U.S. leadership and credibility,” said Yun Sun, director of the China program at the Stimson Center, a Washington-based think tank. Beijing’s pro-Palestinian stance “does get China a lot of mileage.”
Some analysts say that while China has been adept at exploiting disaffection toward the U.S., it hasn’t shown an interest in playing a major security role in the Middle East. Still, its position has won it friends.
Case in point
In late July, Anwar commended China after a meeting in Beijing led to an agreement among Palestinian factions to work toward unity. The parties provided few details of how the rival groups would achieve that.
During the recent visit by Chinese premier Li to Malaysia, the two countries reiterated their support for a Palestinian state and said they were broadly aligned on foreign policy.
Anwar, in an interview with a Chinese news outlet ahead of Li’s trip, announced Malaysia’s intention to join Brics, a grouping of developing countries that includes China and Russia. He played down Malaysia’s disputes with Beijing in the South China Sea, and said he didn’t want an “outside power” getting involved in regional disputes—echoing China’s stance.
Malaysia also issued stronger language in support of China’s position on Taiwan, a self-governing island Beijing has vowed to seize, by force if necessary. Whereas Malaysia had previously affirmed its support for the “peaceful reunification” of China and Taiwan, this time, it agreed to drop the word “peaceful.”
“We are still consistent with our view, [I think] it was more about China wanting us to strengthen some of the words,” Minister of Investment, Trade and Industry Tengku Zafrul Aziz said in an interview with The Wall Street Journal. Malaysia always opposes war, he said.
American businesses appreciate Malaysia’s independent political stance, Tengku Zafrul said, adding that in addition to joining Brics, Malaysia was also trying to enter the Western-led Organization for Economic Cooperation and Development. “We are friends to all, including the U.S.,” he said.
A U.S. official who declined to be named said the Taiwan language was concerning. “We believe it is very important for countries across the region and around the world to signal their support for the status quo and their opposition to the use of force,” he said.
The official said that broadly, he didn’t think unhappiness with U.S. policy on the Gaza war was driving Malaysia into China’s arms. The official said that Malaysia continued to welcome U.S. investment and maintain strong defense cooperation.
China and Malaysia don’t agree on everything. Anwar has said he has raised with Chinese officials the issue of China’s treatment of Uyghur Muslims, a minority group that Western governments, human-rights groups and news organizations say has been subjected to mass detention as part of a campaign of forcible assimilation. But Anwar has stayed away from criticizing China publicly over the issue.
“I think with the Chinese, I think a better way is, of course, for us as friends to discuss and let them explain,” Anwar said last year at the Council on Foreign Relations in New York. Beijing has denied allegations of human-rights violations in Xinjiang, home to the Uyghur people and other minority groups, and said religious extremism in the region needs to be eradicated.
‘Things that symbolize Americanism’
On a recent Saturday evening, several dozen protesters got together in a ritzy central shopping district of Kuala Lumpur, Malaysia’s capital. Gathering outside a McDonald’s, they chanted slogans calling for Palestinian freedom.
“In the mind of many Malaysians, they will blame the U.S. for the excesses conducted by the Israelis,” said Chua Tian Chang, a former Malaysian lawmaker and a leader of the demonstration. “The target has shifted to things that symbolize Americanism.”
Another protester, Mythreyar Mutturamalinggam, spoke out against BlackRock, a major American asset-management firm close to sewing up an acquisition that would connect it to a company that manages dozens of Malaysian airports. “I will do anything to stop that,” he said of the deal, which is controversial in Malaysia because BlackRock is a shareholder in U.S. defense giants such as Lockheed Martin that make weapons used by Israel.
BlackRock didn’t respond to requests for comment.
In northern Malaysia, Adnin Sarlis Alias, who owns a guesthouse, has stopped offering ice cream and instant coffee from Swiss food giant Nestlé, which operates factories in Israel. The 43-year-old has also taken her guesthouse off Airbnb and Booking.com, because they offer lodging in Israel.
Booking.com said it allows accommodations all over the world to list on its platform unless sanctions prohibit it. Airbnb didn’t respond to requests for comment. In 2019, Airbnb said it had never boycotted Israel.
McDonald’s chief executive, Chris Kempczinski, said earlier this year that boycotts had hurt sales in the Middle East, Malaysia, Indonesia and Muslim areas in France. In a late-July earnings call, the company said the Middle East war continues to weigh on sales. McDonald’s said in a statement that it isn’t funding or supporting any governments involved in the conflict.
In Indonesia’s capital, Jakarta, Starbucks stores have signs saying neither the company nor former Chief Executive Howard Schultz provide financial support for Israel—which is also what Starbucks says on its website. Last week, Starbucks Chief Executive Laxman Narasimhan said headwinds persist in the Middle East, Southeast Asia and parts of Europe, which he said were driven by “widely discussed misperceptions about our brand.”
Anwar has acknowledged public concern in Malaysia. He met with Hamas leadership in Qatar in May and condemned Israel’s war in Gaza, where health authorities say 39,000 people have been killed, most of them civilians. Israel invaded Gaza in response to Hamas’s Oct. 7 attack on Israel, which killed 1,200 people, according to Israeli authorities.
Last week, Anwar’s interlocutor at Hamas, Ismail Haniyeh, was killed while visiting Iran, which held Israel responsible. Anwar condemned the killing, saying “only the heedless and unconscionable will not see the need to intensify pressure on Israel to stop their murderous rampage.”
But Anwar is also eager to preserve Malaysia’s economic growth, and that means maintaining good ties with Washington. American technology companies are steering investments away from China, with semiconductor makers such as Intel and Texas Instruments announcing new packaging, assembly and test facilities in Malaysia in recent years.
Facing tough questioning in Parliament, Anwar defended the BlackRock investment. Speaking to the U.S. Chamber of Commerce the same day, he said Malaysia remains open to U.S. investment, and instructed the audience to applaud.
“Possibly, most of you are not aware of how sensitive and difficult [the issue is], and how the entire discourse has been so rancorous,” Anwar said, with a weary smile.
Write to Jon Emont at jonathan.emont@wsj.com
Appeared in the August 10, 2024, print edition as 'Anger Over U.S. Mideast Policy Opens Door Wider for China'.