Chinese executives have been meeting top government officials in Malaysia to seek assurances that they can avoid US tariffs if they relocate manufacturing to the south-east Asian country. The companies have asked Malaysian ministers and senior officials to lobby Washington against imposing tariffs on products made or assembled in Malaysia by Chinese groups, according to three people familiar with the matter.
They also asked if they could access sophisticated US chips. Malaysia accounts for 20 per cent of US semiconductor imports annually — more than Taiwan, Japan or South Korea, according to US Census Bureau data for 2023. US export controls include a ban on “US persons” — American nationals and companies — providing direct or indirect support to certain advanced chip factories in China. “Sometimes they fly in just for one day,” the official added.