As the development of Malaysia economy, bigger and bigger to machine tool demand. Concerned data shows, malaysia imports a machine tool every year 400 million much dollar, because manufacturer of its home machine tool is not much, the machine tool basically relies on an entrance. Concerned personage points out, the characteristic of demand of Malaysia machine tool, be helpful for enlarging our country to be exported to its machine tool. China already became a horse the 4th large trade is companionate China and Malaysia are having long affiliation and commerce contact. 1985, two countries signed the agreement between the first government namely ” shun double taxation deal ” , laid stable foundation for bilateral trade. According to Chinese custom statistic, amount of imports and exports of commerce of the horse in 2002 breaks through 10 billion dollar to close greatly, amount to forteen billion two hundred and seventy-one million dollar, grow 51.4% compared to the same period. Amount of imports and exports of commerce of the horse in 2003 is 20.14 billion dollar, among them China imports 14 billion dollar from the horse, xiang Ma exports 6.14 billion dollar, unfavorable balance of trade amounts to 7.86 billion dollar, the main product of bilateral trade still is mechanical and electrical products. China already became a horse the 4th large trade is companionate, malaysia also becomes me to be in east the largest trade of alliance is companionate. Come nearly two years, the proportion that our country exports the place such as shipping, rolled steel and electronic spare parts to occupy to the horse increases ceaselessly, especially proportion of exit of mechanical and electrical products increases considerably, this is the one big characteristic that I export to the horse. Situation of demand of Malaysia machine tool In recent years, malaysia is bigger to the demand of the machine tool. Look from data of a statistic, malaysia year entrance machine tool restrains 400 million much dollar. At present consumption of Malaysia machine tool still is given priority to with the entrance, basically import from area of Taiwan of Japan, Germany, China. Machine tool of the figuration in entrance of equestrian machine tool occupies 1/3 about strong; Gold cuts a machine tool to occupy 2/3 to lose. Machine tool of the numerical control in importing gold to cut a machine tool is occupied about 20% , among them machining center imports 3000 much dollars every year. It is reported, in last few years, our country machine tool grows toward the exit year after year of Malaysia, average year grow 16% to control. What our country exports Malaysia basically is common lathe. Our country exported common lathe to the horse in all 2003 2.585 million dollar, 56.6% what occupy general gold to cut a machine tool to export. In recent years, as the development of Malaysia economy, malaysia increases to the demand year after year of machine tool of economy numerical control. Current, plant of facility of Guangzhou numerical control already established maintenance to serve a point in Malaysia, this had very good effect to enlarge the exit of machine tool of our country economy numerical control. Malaysia imports a machine tool 0 custom duty To encourage machine tool import, at present Malaysia took entrance machine tool policy of 0 custom duty, this is a good news to enlarging our country machine tool to export. The machine tool enterprise of our country wants the demand situation according to Malaysia, adjust product structure actively, enlarge the exit to Malaysia. Concerned personage points out, in affiliation of equestrian two countries is of long standing and well established, two countries is in an Asia together, the distance is closer, the Chinese in the equestrian square personnel of commerce of the horse in because be in,be engaged in again is more, language communication is convenient, these are right to enlarging our country the outcome of Malaysia machine tool is favorable. Expanding to be exported to Malaysia machine tool while, enterprise of our country machine tool still can consider to set a plant in the horse. Malaysia is attract foreign capital, adopted a series of favourable policy. Additionally our country government urges policy to encourage an enterprise to also have to condition peripheral factory. Concerned personage thinks, enlarge the exit of pair of Malaysia machine tools, also should whole considers to be opposite east the exit of alliance area. East alliance is the Singapore of 10 countries, Malaysia, Indonesian, Philippine, Brunei, Thailand, Vietnam, Laos, Kampuchea, Burmese be in economically the relationship is close, each other has a characteristic. Export and expand to Malaysia machine tool right east alliance exit is put together research has the effect that comprehend by analogy. The our country one big characteristic that exports a machine tool to southeast Asia is numerical control machine tool exports year after year to increase. Our country exported numerical control machine tool to Thailand 2003 3.872 million dollar, export numerical control machine tool to Malaysia 1.016 million dollar, export numerical control machine tool to Vietnam 4.179 million dollar, export numerical control machine tool to Indonesia 2.281 million dollar.