‘More American companies could move to Malaysia if Donald Trump resumes trade war with China’

Donald Trump’s dramatic comeback to the White House has the makings of a Netflix hit, but it was of no surprise for many, including political analyst Associate Professor Dr Azeem Fazwan Ahmad Farouk.

All eyes are now on the new US President-elect’s next steps, and whether he will reignite the trade war against China – something he did during his first term in the Oval Office in 2016.

“I expected Trump to win as globalisation has affected the American working class. Trump’s victory also reflects the people’s unhappiness with the elite establishment,” said Azeem.

“It is also a backlash against the mainstream pro-liberal media and the intellectuals, who seem to look down on them.

“In all likelihood, Trump’s foreign policy will be the same as Trump 1.0 – so I anticipate a trade war with China.”

Azeem, director of the Centre for Policy Research, Universiti Sains Malaysia, said if Trump resumes the trade war, it could lead to more American companies moving out of China and perhaps expanding in Malaysia.

Several major US companies like Google, Amazon Web Services, and Microsoft have already committed billions of US dollars to expand their operations in Malaysia.

Azeem said that by aligning itself with BRICS, Malaysia could strengthen its economic ties with China and India.

“This could encourage deeper collaboration and growth opportunities with other BRICS nations and help counter American hegemony,” said Azeem.

“The Chinese companies who may have difficulty dealing with the US can sell their goods within the BRICS economic bloc, of which we are a member.”

BRICS was established in 2009, initially comprising Brazil, Russia, India, and China. Since then, it has added South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. Last month, Malaysia joined the bloc alongside other countries like Indonesia, Thailand, Vietnam, Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Nigeria, Turkey, Uganda, and Uzbekistan.

BRICS countries collectively represent over 40 per cent of the global population and nearly 25 per cent of the world’s gross domestic product.

“Malaysia must be sensitive in its dealings with the US, and BRICS gives us some breathing space if things do go south,” added Azeem.

“(Malaysian Prime Minister) Datuk Seri Anwar Ibrahim has endeared himself to Russian President Vladimir Putin and is now in China, where he will meet President Xi Jinping. We are navigating a period of significant geopolitical uncertainty.

“China is still an important market for the West, and we can enjoy the benefits if we are friendly to both the US and China.”

Malaysia’s King, Sultan Ibrahim, also visited China in September, at the invitation of Xi.

Meanwhile, Anwar congratulated Trump on his “remarkable political comeback and victory” and hoped to move forward with optimism, collaboration, and a shared purpose.

“The US remains Malaysia’s largest source of foreign investment and a vital player in the Asia-Pacific region,” he said yesterday.

“As Asean Chair in 2025, Malaysia hopes America will reinvigorate its engagement with Southeast Asia. We also urge the US to use its considerable influence to help end the devastating violence and loss of life in Palestine and Ukraine.

“We look forward to working closely with the incoming president to foster mutual benefits for the people of both our nations,” Anwar added.