Beijing Flags Grave Concerns Over Malaysia Us Trade Deal Report

---

 


China has voiced complaints to Malaysia over the trade agreement inked with the United States last month, with Chinese authorities urging Putrajaya to “properly handle” the matter.
Bloomberg today reported that during a meeting with Malaysian officials on Tuesday (Nov 25), China’s Commerce Ministry voiced “grave concerns” about sections of the US-Malaysia trade pact.
The Chinese government is also said to have called on Putrajaya to “fully consider and properly handle this matter in line with its long-term national interests.”
Citing a readout, Bloomberg quoted Malaysia’s Investment, Trade and Industry Ministry as having offered “explanations and clarifications,” without disclosing specific details.
The engagement reportedly comes on the heels of a similar discussion between Chinese and Cambodian officials a week earlier, during which China’s trade envoy Li Chenggang pushed Phnom Penh to address Beijing’s concerns.
Cambodian officials had likewise provided clarifications.
The news agency added that China’s Commerce Ministry did not elaborate on the issues raised, while Malaysia’s Investment, Trade and Industry Ministry, as well as Cambodia’s government spokesperson, did not respond to requests for comment.
No plans to renegotiate
Yesterday, Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz reportedly said Malaysia has no plans to renegotiate its trade deal with the US, with Putrajaya focused on ensuring that all ministries adhere to the agreement.
Investment, Trade and Industry Minister Tengku Zafrul Abdul AzizSpeaking at a press conference after addressing a bipartisan parliamentary caucus on the Malaysia-US trade agreement, Zafrul said Malaysia will only proceed with ratification once all parties are ready.
According to a report by The Edge, he noted that while all trade agreements, including free trade agreements, allow for periodic reviews, such procedures, which require both parties’ consent, can only take place after Malaysia ratifies the deal.
The minister also rejected claims that the pact could harm Malaysia–China relations, stressing that the deal is a “trade agreement, not a geopolitical alliance.”
The agreement, signed during US President Donald Trump’s visit to Malaysia last month, includes provisions encouraging closer alignment with Washington on national security matters such as export controls, sanctions, and investment screening.
First direct protest
While Beijing has long cautioned countries against entering US deals that undermine its interests, this appears to be its first direct protest.
The Malaysia-US pact grants preferential access for American goods and services, while the US has exempted certain Malaysian exports from Trump’s 19 percent reciprocal tariff.
US President Donald TrumpIn return, Malaysia is expected to observe US trade restrictions tied to economic or national security concerns, align itself with US export controls and sanctions on sensitive technologies, and prevent Malaysian firms from facilitating sanctions evasion.
Putrajaya is also expected to explore mechanisms to screen inbound investments for national security risks, including those involving critical minerals and infrastructure.
Cambodia’s deal requires it to eliminate tariffs on US food, agricultural goods, and industrial products, with the US offering exemptions from its 19 percent tariff on hundreds of Cambodian exports.
Phnom Penh must similarly comply with US export controls and the entity list, and cooperate with US requests for information on third-country investment activity.
Both Malaysia and Cambodia also agreed to boost defence trade with Washington and strengthen enforcement against transhipment, according to the agreements. - Mkini

---