Geopolitics Quarterly

Geopolitics Quarterly

Analysis of the US-CHINA Trade War: China’S Diversion from the US towards Malaysia

Document Type : Original Article

Authors
Chong Su Hui 1
Rathnan Anbananthan 2
Imamul Izhar Irhami 3
Raysa Fatma 3
Siti Farahiyah Ab Rahim 1
Mohd Shahril Nizam Md Radzi 4
Kassim Mohammad Hantosh 5
1 Faculty of Law, University Kebangsaan Malaysia, Malaysia.
2 University Kebangsaan Malaysia, Malaysia. p
3 Diponegoro University, Indonesia.
4 Faculty of Law, Universiti Kebangsaan Malaysia, Malaysia.
5 Al-Mustaqbal University, Iraq.
10.22034/igq.2024.476540.1947
Abstract
Malaysia has been a key trading partner with the US and China since its independence. However, the US's imposition of safeguard tariffs has triggered a trade conflict with China, indirectly impacting Malaysia's supply chains and global pricing. This paper aims to explore the implications of the US-China trade war on Malaysia, focusing on the resulting international trade tensions among the involved countries. Using a doctrinal-qualitative approach, the trade policies of these three nations are analysed. With China's investment in Malaysia growing under the Belt and Road Initiative (BRI), the potential for investment diversion from China is high. However, Malaysia faces strong competition from ASEAN countries for this investment relocation, necessitating proactive economic development measures. This paper suggests that Malaysia needs to anticipate the future of multilateral trade with the US and China to effectively navigate these challenges. By addressing these issues, Malaysia can better position itself in the evolving global trade landscape.
Keywords
US-China Trade Wars
Malaysia
Safeguards Tariffs
Diversion
FDI

Subjects

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Geopolitics Quarterly
Volume 20, Special Issue
Autumn 2024
Pages 162-182

  • Receive Date 06 September 2024
  • Revise Date 25 October 2024
  • Accept Date 02 December 2024