Will Malaysia’s potential Huawei AI deal risk clash with US trade pact?
Malaysia’s reported move to use chips from Chinese tech giant Huawei in its 2 billion ringgit (US$494 million) sovereign AI project could test the export-control commitments it signed with Washington last year, analysts say. The move could complicate Kuala Lumpur’s long-running effort to work with both American and Chinese technology firms, particularly as Washington pushes US AI systems across…
Malaysia's potential collaboration with Chinese tech giant Huawei for its 2 billion ringgit sovereign AI project may conflict with the US trade pact signed last year, according to analysts. The proposed use of Huawei's Ascend 910C accelerators could complicate Malaysia's efforts to work with both American and Chinese technology firms, especially as Washington pushes AI systems across Southeast Asia.
State-linked Telekom Malaysia was chosen for the project after a public tender, and Malaysia's National Security Council is reportedly set to discuss the matter with US officials later this month. Malaysia's Digital Ministry proposed the 2 billion ringgit project to strengthen secure AI infrastructure, protect national data, and enable large-scale AI applications, partly in response to concerns about foreign jurisdiction over Malaysian data.
The move could raise questions about Malaysia's commitment to Washington's export-control commitments, as per Article 5.2 of the Agreement on Reciprocal Trade. Malaysia would need to align with all unilateral export controls imposed by Washington and ensure Malaysian companies do not undermine them. The US Commerce Department has warned that using advanced Chinese computing chips, including Huawei's Ascend 910C, could violate US export controls and expose companies to enforcement action.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
