Malaysia Enforces Export and Transit Controls on US-Made AI Chips: Channel News Asia Reports
Malaysia Enforces Export and Transit Controls on US-Made AI Chips: Channel News Asia Reports
According to Channel News Asia, Malaysia has implemented strict controls on the export, transhipment, and transit of all artificial intelligence chips originating from the United States as of 14 July 2025. This immediate measure, announced by Malaysia’s investment, trade, and industry ministry, requires a strategic trade permit for any export, transshipment, or transit of high-performance AI chips of US origin. The initiative aims to address regulatory gaps as the Malaysian government continues reviewing whether to officially add these advanced AI chips to its Strategic Items List, Channel News Asia states.
Channel News Asia notes that the United States has repeatedly raised concerns about US-made AI chips being transshipped—especially to China. Malaysia, a key global export and logistics hub for high-end AI chips, is now working to close these loopholes. Channel News Asia highlights that last month, Malaysia investigated claims that a Chinese company was circumventing US export curbs by using servers in the country equipped with Nvidia chips. The Wall Street Journal reported that Chinese engineers had traveled to Malaysia in March to build AI models using advanced Nvidia chips, with plans to bring the models back to China.
Washington has tightened its export restrictions on advanced semiconductors to China, including chips made by Nvidia, to preserve technological competitiveness. China’s foreign ministry spokesperson Guo Jiakun emphasized that Chinese firms follow local regulations and expressed willingness to maintain an open international trade order in cooperation with Malaysia and other countries in the region, as cited by Channel News Asia. Malaysia reaffirmed its position against attempts to bypass export controls or conduct illicit trade.
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