Malaysia urges Chinese language corporations to keep away from utilizing it to dodge U.S. tariffs

KUALA LUMPUR – Malaysia has urged Chinese language corporations to chorus from utilizing it as a base to “rebadge” merchandise to keep away from U.S. tariffs, its deputy commerce minister stated on Monday, amid growing export restrictions and issues of a U.S.-China commerce warfare.

Washington is predicted to additional curb exports to Chinese language semiconductor toolmakers and gross sales of sure chipmaking gear, together with merchandise manufactured in Malaysia, Singapore and Taiwan, sources have informed Reuters.

Malaysia is a serious participant within the semiconductor trade, accounting for 13% of worldwide testing and packaging, and is seen as nicely positioned to seize additional enterprise within the sector as Chinese language chip corporations diversify abroad for assembling wants.  

“Over the previous 12 months or so… I’ve been advising many companies from China to not spend money on Malaysia in the event that they have been merely considering of rebadging their merchandise through Malaysia to keep away from U.S. tariffs,” Malaysia’s deputy commerce minister Liew Chin Tong informed a discussion board on Monday. 

He didn’t specify the kinds of companies.

Liew stated no matter whether or not the U.S. had a Democratic or Republican administration, the world’s largest economic system would impose tariffs, as seen within the photo voltaic panel sector. 

Washington imposed tariffs on photo voltaic exports from Vietnam, Thailand, Malaysia and Cambodia – house to factories owned by Chinese language corporations – final 12 months and expanded them in October following complaints from producers in america.

U.S. President-elect Donald Trump has threatened to slap an extra 10% tariff on all Chinese language imports when he takes workplace on Jan. 20.