Kuala Lumpur, 15 August 2026 – Port Klang Free Zone has rejected suggestions that Chinese-linked businesses or international cargo moving through Malaysian free zones are, by themselves, evidence of tariff evasion. Its response places Malaysia’s trade-compliance architecture under closer investor scrutiny as the United States intensifies attention on illegal transshipment.
The concern arises from a US report that grouped more than 40 economies by perceived exposure to pass-through trade. Malaysia was placed in a category described as having scale and significant integration with China. The report warned that deep-water ports, manufacturing hubs and free zones could be used to conceal Chinese origin and avoid Section 301 tariffs or anti-dumping duties.
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