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Malaysia Addresses China’s Concerns Over US Trade Agreement

Malaysia Addresses China’s Concerns Over US Trade Agreement

Post by : Meena Hassan

Prime Minister Datuk Seri Anwar Ibrahim has reassured China regarding Malaysia's recent trade agreement with the United States, affirming that it does not disrupt the strong ties Malaysia has maintained with the Mainland.

During the launch of Perodua’s inaugural electric vehicle at Menara Miti, Anwar mentioned that he communicated this message directly to Chinese Premier Li Qiang.

“They requested clarification, and we have provided it. There’s no need to overstate the situation. China continues to be a vital trading partner,” he informed the media.

Previously, Beijing lodged formal diplomatic protests with both Malaysia and Cambodia regarding the trade deals established with Washington at last month's ASEAN Summit. China’s Ministry of Commerce expressed “serious concerns” over certain aspects of these agreements, as indicated by a government statement.

Central to China’s misgivings are specific clauses mandating Malaysia and Cambodia to comply with U.S. national security restrictions, including export controls, sanctions on sensitive technologies, and limitations on defense collaboration with other nations.

Malaysia signed the Agreement on Reciprocal Trade (ART) with the United States on October 26. As per the deal, Malaysia is to adhere to U.S. trade restrictions, ensuring its firms do not assist other nations in evading these regulations. The agreement also includes pledges to bolster defense-related trade with Washington.

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

Cambodia entered a similar agreement, eliminating tariffs on various U.S. agricultural, food, and industrial goods, receiving corresponding tariff exemptions in return.

These agreements are part of a broader series of economic and security accords inked during President Donald Trump’s recent tour of Asia, which included visits to Vietnam and Thailand.

Dec. 1, 2025 2:21 p.m. 426
Global News Politics News

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