Kassim Mohammad Hantosh

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.