Malaysia regards China as an ally to strengthen the position and voice of Southeast Asian nations in regional affairs, Deputy Prime Minister Najib Razak said today.

He said "the China threat" has given way to the "China opportunity," in a speech at an international conference marking 30 years of diplomatic ties between the two.

"In the face of growing regionalism in the west, Asean is looking towards China as an ally to strengthen and enhance its position and voice in regional affairs," Najib said.

Najib, who is also the defence minister said the South China Sea, where the disputed Spratly islands are located, was seen less as a "flashpoint," in the region now compared with a decade ago.

China and the Philippines, along with Brunei, Malaysia, Taiwan and Vietnam, lay claim to areas around the Spratlys, which straddle vital shipping lanes and fishing grounds and are believed to contain vast oil and gas reserves.

All but Brunei have troops posted across the archipelago of more than 100 islets, reefs and atolls.

China's influence

Najib said China realised that it had to encourage regional ties not only to secure a peaceful environment to promote their own economic interests but also to secure their influence in Southeast Asia.

"China understands it cannot grow in isolation. A stable environment will accelerate its own economic development," he said.

On economic ties between the 10-member Association of Southeast Asian Nations (Asean) and China, Najib said while China was a competitor in securing foreign direct investments it provided economic opportunities.

As its economy expands, China's 1.3 billion people would be a huge potential market for goods manufactured in Southeast Asian countries, he said.

"China has become an important trading and investment partner for ASEAN with many of our companies exploring win-win opportunities with Chinese counterparts," he said.