China warns Malaysia, Cambodia on US trade agreements citing ‘grave concerns’

BEIJING, Nov 28 — China has issued a direct rebuke to Malaysia and Cambodia, lodging formal complaints over the new trade deals the two countries signed with the United States last month.

The move signals Beijing’s growing intolerance for agreements that tie Southeast Asian nations to Washington’s national security agenda, placing the region squarely in the middle of an escalating superpower rivalry, Bloomberg reported.

Chinese Ministry of Commerce officials told their Malaysian counterparts this week that Beijing has “grave concerns” with certain parts of the deal, according to a government readout.

“We hope Malaysia will fully consider and properly handle this matter in light of its long-term national interests,” Chinese officials were quoted as saying after the engagement.

A similar message was delivered to Cambodian officials last week.


At the core of China’s concerns are clauses in both agreements that effectively require Malaysia and Cambodia to align with Washington on sensitive national security issues.

Under the deals, both countries are expected to follow US trade restrictions, export controls, and sanctions on sensitive technologies.

They also commit to preventing their companies from helping other nations circumvent those measures and to enhance defence trade with the US.

The situation highlights the tightrope Southeast Asian nations must walk. China remains a key economic partner, but the threat of tariffs from the US under President Donald Trump has forced many countries to make greater trade and security concessions to Washington.

The deals were part of a flurry of pacts signed during Trump’s recent tour of Asia, which also included Vietnam and Thailand.

In exchange for the security commitments, Malaysia will receive preferential access for its goods and services, including exemptions from Trump’s 19 per cent reciprocal tariffs on certain items.

Cambodia, in turn, will drop all tariffs on US food, agricultural, and industrial products in exchange for similar exemptions.

https://www.malaymail.com/news/money/2025/1...concerns/199997

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