KUALA LUMPUR: Chinese executives have been meeting top government officials in Malaysia to seek assurances they can avoid US tariffs if they relocate manufacturing to the country, according to a report by Financial Times.
Manufacturers of products including battery, medical devices and semiconductor made the requests after the United States said it would raise tariffs on Chinese goods in order to protect American businesses, the report said, citing three unidentified people familiar with the matter.
Chinese companies have shifted production to South-East Asian countries such as Malaysia, Vietnam and Thailand to avoid duties levied on some of their key export products.
Executives from semiconductor firms have also asked if they could access sophisticated US chips, the report said. While the move has helped fuel higher foreign investments into the region, it has also brought exports from South-East Asia under greater US scrutiny. — Bloomberg