Malaysia Addresses China's Concerns Over US Trade Agreement

Post by : Mina Rahman

Prime Minister Datuk Seri Anwar Ibrahim has confirmed that Malaysia communicated its recent trade agreement with the United States to Beijing, reassuring that it will not compromise Malaysia’s longstanding partnership with China.

After unveiling Perodua’s first electric vehicle at Menara Miti, Anwar stated he delivered this message directly to Chinese Premier Li Qiang.

“They sought clarification, and we provided it. There’s no reason to escalate the situation. China is a vital trading ally,” he said to reporters.

Previously, Beijing had lodged official diplomatic protests with both Malaysia and Cambodia regarding the trade agreements established with Washington during last month’s Asean Summit. China’s Ministry of Commerce expressed “serious concerns” about certain aspects of the deal, according to a government statement.

China's objections center on clauses obligating Malaysia and Cambodia to comply with U.S. national security regulations, which include export controls, sanctions on critical technologies, and limitations on military cooperation with other nations.

On October 26, Malaysia signed the Agreement on Reciprocal Trade (ART) with the United States. This deal mandates Malaysia to adhere to U.S. trade restrictions and ensure its companies do not assist others in evading these measures. The arrangement also involves commitments to enhance defense-related trade with Washington.

In exchange, Malaysia will gain preferential access for its goods and services, coupled with exemptions from the U.S. administration’s 19 percent reciprocal tariffs on selected items.

Cambodia has entered into a similar agreement, eliminating tariffs on various U.S. agricultural, food, and industrial products in return for comparable tariff relief.

These agreements are part of a broader set of economic and security pacts established during President Donald Trump’s recent visits to Asia, which also included stops in Vietnam and Thailand.