Beijing's envoy Huang Huikang on Friday visited Kuala Lumpur's Chinatown where ethnic Malay hardliners chanted slogans against the community earlier this month, raising fears of conflict in the multi-ethnic nation.
"The Chinese government opposes terrorism and any form of discrimination against races and any form of extremism," Huang was quoted as saying by The Star newspaper during the visit.
His comments, which are at odds with China's policy not to interfere in other nations' internal affairs, prompted Malaysia's foreign ministry to call in the ambassador "to provide an explanation".
According to The Star, Huang on Friday also said Beijing would not be afraid to speak out against incidents that could derail Malaysia-China relations.
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Ser Choon Ing, secretary general of the Kuala Lumpur and Selangor Chinese Assembly Hall, a coalition of Chinese community groups, welcomed the ambassador's visit and his remarks.
"I don't think it can be considered interference. What the ambassador did was probably a good thing for the Chinese and also for Indians who feel discriminated against," he said.
He said: "We refrain from interfering into other countries' internal affairs.
"What our ambassador did was normal, he was visiting the Chinese community during the Mid-Autumn festival. We hope that Malaysia can remain united and stable, and that people from different ethnic groups can live together in peace."
Speaking at a business conference on Monday in Kuala Lumpur, Huang stressed China and Malaysia enjoyed good relations.
"China and Malaysia have a long history of friendship. Malaysia was the earliest ASEAN country to have diplomatic ties with China and after 41 years both countries have close relations in politics, economy, culture, military, tourism and other fields," he said.