Trade between China and its largest ASEAN partner, Malaysia, has surged 15 percent so far this year and is set to top 100 billion dollars by year's end. China has also become a major investor in Malaysia over the past three years. Still, Malaysia's shock election results last month seemed to have clouded their ties with newly elected Prime Minister Mahathir Mohamad criticizing some Chinese investments. But events this week have done much lot to reassure China. Rian Rian Maelzer reports from Kuala Lumpur.

Even before Mahathir Mohamad and his Pakatan Harapan alliance stunningly swept to power last month, Mahathir expressed misgivings about several major Chinese projects here. And after taking office, the rhetoric of Mahathir's government created doubts about the future of China-Malaysia economic ties. Those worries eased this week with the warm welcome for Alibaba founder Jack Ma, and his company's initiatives and investments, as well as positive comments from officials, including China's ambassador after his meeting with Mahathir.

BAI TIAN CHINESE AMBASSADOR TO MALAYSIA "He said he welcomes Chinese companies to do business here in Malaysia and expressed his belief that there's a lot to do together. The prime minister's statements were very indeed encouraging for both the Chinese audience back in China as well as for the Chinese companies doing business here in Malaysia, especially so for those Chinese companies who are planning to invest in this country."

Chinese companies have invested over the past four years in a variety of projects including ports, industrial parks, power generation and property development. China is also funding and building a major rail project, one that the new government wants to renegotiate due to concerns over its cost and economic viability.

RIAN MAELZER KUALA LUMPUR "But Mahathir said this week that he's keen on investments that, like Alibaba's ventures and collaborations here, create quality employment opportunities for locals and boost the country's technological capabilities."

ABDUL MAJID AHMAD KHAN FORMER MALAYSIAN AMBASSADOR TO CHINA "When he was the fourth prime minister he laid the foundation of strong Malaysia-China relations. Mahathir has accepted the invitation to visit China and I think the earlier such visit could take place would be good for the two countries. It would actually reflect the confidence and would reset the relations ahead."

Majid says, though, that companies looking to invest in or collaborate with Malaysia need to carefully study local needs and sensitivities, and consider Malaysia's financial capabilities. He said that then there will be scope for plenty of more win-win ventures between China and Malaysia. Rian Maelzer, CGTN, Kuala Lumpur.