Malaysian trade officials have been urging Chinese companies not to use the country as a base to “rebrand” products to avoid U.S. tariffs.
Deputy Trade Minister Liew Chin Tung said this week that Kuala Lumpur would rather avoid getting caught up in a trade war between the United States and China, which could escalate once Donald Trump takes office again in mid-January. Threatens to impose tariffs on Chinese goods.
Liu made the admission as Washington announced a third wave of chip export controls on Chinese chipmakers and parts suppliers.
See also: China strikes back at U.S. ban, halts exports of key chip materials
Washington's latest export restrictions Targeting 140 Chinese semiconductor companies Sources told Reuters that these include products made in Malaysia, Singapore and Taiwan.
Malaysia is a major player in the semiconductor industry, accounting for 13% of global testing and packaging, and is seen as well positioned to gain more business in the industry as Chinese chip companies diversify their assembly needs overseas.
“Over the past year or so… I have been advising many Chinese companies not to invest in Malaysia if they just want to relabel their products through Malaysia to avoid U.S. tariffs,” Malaysia's Deputy Trade Minister Liew Chin Tung said at a forum on Monday. .
He did not specify the type of business.
Regardless of whether the U.S. is under a Democratic or Republican government, the world's largest economy will impose tariffs, Liu said, as Solar energy sector.
Last year, Washington imposed tariffs on solar exports from Vietnam, Thailand, Malaysia and Cambodia, where Chinese companies have factories. October expanded them Following complaints from US manufacturers.
US President-elect Trump has threatened to impose a 10% tariff on all Chinese imports when he takes office on January 20.
- Reuters Additional editing by Jim Pollard
See also:
Trump's warning of 100% tariffs on BRICS rattles Asian currencies
China's chip industry faces third wave of U.S. export restrictions
Chinese media on Trump: “There are no winners in the tariff war”
IMF warns retaliatory trade tariffs could backfire in Asia
Trump claims poll victory, China faces more trade competition
Chinese solar companies shift base to Southeast Asia to avoid U.S. tariffs
U.S. announces preliminary tariffs on Southeast Asian solar panels
Chinese solar companies pay price for global dominance – FT
Xinjiang regulations: $640 million worth of Southeast Asian exports detained at U.S. ports
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