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.