Malaysia urged Chinese companies to avoid using the country as a base to evade U.S. tariffs.
“Over the past year or so… I have been advising many businesses from China not to invest in Malaysia if they were merely thinking of rebadging their products via Malaysia to avoid U.S. tariffs,” said Deputy Trade Minister Liew Chin Tong on Monday, but Liew did not specify the types of businesses.
The warning comes the same day as the United States launched its third crackdown in three years on China’s semiconductor industry, placing restrictions on 140 companies, including major chip equipment maker Naura Technology Group.
Malaysia plays a critical role in the global semiconductor supply chain. The country accounts for 13% of worldwide testing and packaging capacity and is attracting interest from Chinese firms seeking overseas assembly options.
The move also limits shipments of advanced memory chips and chipmaking tools to China, reflecting Washington’s ongoing efforts to prevent Beijing from advancing its capabilities in artificial intelligence and military technology.
The new restrictions target exports of high-bandwidth memory chips, 24 chipmaking tools, and three software tools, with curbs extending to countries like Singapore and Malaysia. This package highlights the U.S.’s efforts to limit China’s technological progress and protect national security interests in the semiconductor sector.
Liew cautioned that U.S. trade policy is unlikely to change regardless of political leadership. “Whether it’s a Democratic or Republican administration, the U.S. will impose tariffs,” he said, pointing to the solar panel sector as evidence.
