The fifth example revolves around China's attitude towards the Chinese in Malaysia during two different periods: (i) a low ethnic tension period in 2005 involving the so–called “Nude Squat” (also known as “the lock up girl”) episode, and (ii) a high ethnic tension period in 2015 involving the Chinese ambassador's behaviour and speech. In the latter case, the Malaysian authorities considered the ambassador's actions to be an intervention in their domestic affairs but it did not develop into a diplomatic uproar. Does this case represent a shift in Beijing's policy towards the Chinese overseas and in China's foreign policy principles in general?

BACKGROUND

Malaya was a British colony that became independent only in 1957. Owing to its long struggle against a domestic communist insurgency, which was dominated by ethnic Chinese and also perceived to be supported by the PRC, the Malayan government adopted an anti–PRC attitude. The anti–communist and anti–PRC policy continued after 1963, when Malaya, together with three other British colonies, formed Malaysia. It was only in 1974 that Malaysia established relations with the PRC, when the then prime minister, Tun Razak, sought to woo ethnic Chinese votes during the general election. Nevertheless, even after diplomatic ties were established, the Malaysian government imposed restrictions on interactions between Chinese Malaysians and mainland Chinese. The bilateral relationship improved only after the end of the Cold War, long after Deng Xiaoping had introduced market reforms in China.

Malaysia is a multi–ethnic country. It has a large number of ethnic Chinese, but the Malays are the dominant ethnic group. There has long been some degree of tension between the Malays and the Chinese, which erupted in 1969 in a major racial riot. This resulted in the entrenchment of Malay preeminence, encapsulated in the political doctrine of Ketuanan Melayu (Malay supremacy), to which the Malay elite, especially the Malay–based ruling party the United Malays National Organization (UMNO) is strongly committed until this day. Although no anti–Chinese riots have taken place since the events of 1969, the relationship between the two ethnic groups remains fragile.

Notwithstanding the uneasy relationship between the Malays and Chinese Malaysians, state–to–state relations between China and Malaysia improved, especially after China'sphenomenal economic growth.