KUALA LUMPUR(July 30): Prime Minister Tun Dr Mahathir Mohamad will be welcomed as an “old friend” of China when he visits President Xi Jinping next month, according to Tun Daim Zainuddin.

Daim, head of a Mahathir-appointed Council of Eminent Persons, was dispatched to Beijing earlier this month to renegotiate deals which the premier deemed too expensive and lopsided.

The South China Morning Post (SCMP) yesterday reported that the two governments have accelerated preparatory work for the highly anticipated meeting.

It said Guo Yezhou, a senior official of the Chinese Communist Party, met Mahathir on Sunday, ahead of a scheduled visit by Chinese Foreign Minister Wang Yi on Tuesday.

Mahathir is due to visit the Chinese capital in August, although the dates of his visit have yet to be finalised.

SCMP added high-level talks between diplomatic officials from both sides have been underway in Malaysia since Friday, before Wang’s visit en route to a meeting of regional foreign ministers in Singapore.

It said Daim’s comments were the latest sign Mahathir’s new government is eager to dispel the perception its decision to suspend some US$23 billion of China-linked infrastructure projects reflects a policy of hostility towards China.

“I was sent by my prime minister and I reported back to him,” SCMP quoted Daim as saying.

“I can only say that we had very good discussions and will continue enhancing this relationship for mutual benefit.”

SCMP said Daim was responding to emailed questions about his Beijing visit, where he met Wang and Premier Li Keqiang.

Daim said perceptions that Beijing was worried about the new government were misconceived.

“The commentators have read the situation completely wrong,” Daim said. “Mutual respect is very important. We value each other’s friendship and as Asians, we appreciate the difference in culture and understand our sensitivities.

“Sometimes we agree to disagree without harming our long established relationship,” SCMP quoted Daim as saying.