Malaysia announced tighter regulations to prevent the unregulated export of AI chips to China, a move aimed at blocking a potential loophole for US-originated technologies. The Ministry of Investment, Trade, and Industry revealed that exporters must now secure a strategic trade permit for US-manufactured high-performance AI chips before sending them to China. This decision comes after US concerns about Malaysia being a transit point for such chips into China, possibly breaching US restrictions. Malaysia’s government emphasized its commitment to enforcing international trade laws and warned that any entities bypassing these regulations would face serious legal consequences. While this step might align with US interests, questions remain about its impact on Malaysia’s international trade dynamics and relations with US. Exporters must obtain and prep required permits 30 days prior to shipment.