Kuala Lumpur, 29 July 2026 – Malaysia is refining a policy of conditional neutrality as it tries to preserve access to United States semiconductor technology while continuing to welcome Chinese investment. The approach reflects the country’s role inside increasingly scrutinised technology supply chains and its need to reassure both major powers.
The policy is not passive equidistance. It relies on stronger regulation, closer monitoring of sensitive technologies and assurances that hardware or knowledge supplied by one side will not be diverted to the other. That makes compliance capacity a central economic asset rather than a narrow administrative concern.
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