Malaysia Warns Against Product Rebadging Amid U.S.-China Trade Tensions

Malaysia's deputy trade minister advised Chinese companies against using Malaysia as a base to 'rebadge' products to bypass U.S. tariffs. Amid U.S.-China trade tensions, the U.S. is expected to further restrict exports to Chinese semiconductor companies. Malaysia is a key player in the semiconductor sector.

In Kuala Lumpur, Malaysia's deputy trade minister urged Chinese companies not to use the country as a haven for 'rebadging' products to dodge U.S. tariffs. This warning comes amidst rising trade tensions between the U.S. and China.

Sources informed Reuters that Washington is likely to impose stricter export restrictions on Chinese semiconductor manufacturers, impacting products made in Malaysia, Singapore, and Taiwan. Malaysia, holding 13% of the global semiconductor testing and packaging market, is positioned to benefit from Chinese firms' overseas diversification.

The deputy minister, Liew Chin Tong, emphasized that U.S. tariff policies would persist regardless of its governmental administration, citing existing tariffs in the solar panel industry. Recent expansions of these tariffs include those on solar exports from Vietnam, Thailand, Malaysia, and Cambodia.

(With inputs from agencies.)