Dec 2 2024: Malaysia has urged Chinese companies to avoid using the country as a base to “rebadge” goods and circumvent U.S. tariffs, Deputy Trade Minister Liew Chin Tong stated on Monday, as tensions between Washington and Beijing over trade restrictions escalate.
The warning comes amid expectations that the U.S. will tighten export controls on semiconductor tools and equipment, including those manufactured in Malaysia, Singapore, and Taiwan, sources told Reuters.
As a significant player in the global semiconductor industry, Malaysia contributes 13% of the world’s testing and packaging output. The nation is strategically positioned to attract business from Chinese firms seeking overseas assembly alternatives. However, Liew cautioned against investments aimed solely at avoiding U.S. tariffs, highlighting long-term trade policy risks regardless of the U.S. administration in power.
In recent years, Washington has expanded tariffs on Chinese-linked industries, including solar panels, citing concerns over trade practices. Additionally, U.S. President-elect Donald Trump has announced plans to impose a 10% tariff on all Chinese imports once he assumes office on January 20.
