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Malaysia’s ‘China plus one’ gold rush stumbles over a US tariff threat
Job losses and factory closures loom as Washington’s anti-China trade policies threaten to derail Malaysia’s economic aspirations
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After six years working at a factory in Malaysia’s Penang state, Benny suddenly found himself on the unemployment line this year – caught in the crossfire of international trade tensions that are upending Chinese manufacturing across Southeast Asia.
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Since February, Jinko Solar’s factory in Penang has slashed hundreds of jobs, retreating from the market as solar tech manufacturers in the United States clamour for government protection against imports from Chinese giants.
“Of course, we were all sad, but we just have to accept it as God’s will. It was a nice place to work and the salary was good,” said Benny, who asked that This Week in Asia withhold his full name due to confidentiality clauses tied to his lay-off.
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The Shanghai-headquartered company’s pullback followed accusations from Washington that Chinese firms were evading tariffs by relocating operations to Southeast Asia and gaining an unfair advantage over US manufacturers. In a bid to close this loophole, the US Department of Commerce is ramping up taxes on solar panels and technology shipped from Malaysia, Cambodia, Thailand and Vietnam: four countries that collectively exported nearly US$10 billion in solar products to the US in 2023 – nearly double the previous year’s trade figures.
On May 15, US authorities launched an anti-dumping investigation into solar panel exports from the four, responding to a petition from the American Alliance for Solar Manufacturing Trade Committee. A two-year exemption from anti-dumping scrutiny the countries had previously enjoyed expired on June 6.
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