‘Take sides’? Malaysia insists on conditional neutrality amid US-China tech rivalry
To keep US chips and Chinese capital flowing, Malaysia is working overtime to reassure both Washington and Beijing
Malaysia’s solution was conditional neutrality, he said, backed by stronger regulations, closer scrutiny of sensitive technologies and assurances that neither side’s hardware or know-how would end up in the other’s hands.
The challenge is particularly acute for Malaysia’s growing data-centre sector, with policymakers needing to convince Washington that advanced US artificial intelligence chips will not be diverted to China, while assuring Beijing that tighter controls do not amount to choosing sides.
They ask me to take sides when it comes to security of technology
“Today the first question I always get asked is whether Malaysia is aligned with China or the US,” said Zafrul, a former finance minister who also served as Malaysia’s trade chief from 2022 to December last year, “Companies then make decisions based on that [answer]. It used to be driven by efficiency, cost, but now it’s driven by alignment.”