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Chinese companies seek assurances from Malaysia on avoiding US tariffs, FT reports
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Chinese companies seek assurances from Malaysia on avoiding US tariffs, FT reports
Jun 24, 2024 10:04 PM

June 25 (Reuters) - Chinese executives have been meeting

top Malaysian officials to seek assurances they can avoid U.S.

tariffs if they relocate their battery, medical devices and

semiconductor manufacturing to the country, the Financial Times

reported on Tuesday.

The companies have asked Malaysian ministers and senior

government officials to lobby against U.S. imposing tariffs on

products made or assembled in Malaysia by Chinese groups, the

report said, citing three people familiar with the matter.

These moves come after the Biden administration last month

unveiled steep tariff increases on an array of Chinese imports

including electric vehicle (EV) batteries, computer chips and

medical products. Some of the tariff hikes will take effect on

Aug. 1.

The Malaysian Prime Minister's office and the trade

ministry did not immediately respond to a Reuters request for

comment.

As the United States has intensified efforts to reduce trade

with China by hiking tariffs, imports from Southeast Asian

countries such as Vietnam, which relies on Chinese input for

much of its exports, have surged.

Chinese companies such as solar panel maker Trina Solar

have moved to boost manufacturing facilities in

Vietnam and Thailand, which are not subject to the same duties,

in a bid to evade the steep tariffs.

This has fuelled foreign investment from China, but there is

uncertainty over whether the Biden administration will introduce

new tariffs on Chinese-made goods in the region.

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