Malaysia ‘stands firm' on US chip sanctions after alleged workaround by Chinese company
Trade authorities in
Malaysia have launched an investigation into claims that Chinese engineers bypassed US chip curbs by renting data centres packed with high-end Nvidia chips to train their artificial intelligence (AI) model in the country.
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The allegation, made in a report by The Wall Street Journal last Thursday, poses a potential stumbling block to Malaysia's tariff negotiations with the
US , which has curbed
China 's access to high-end chips, including through third nations.
Malaysia's trade ministry said it was in the process of verifying the claims. Though the activity might not necessarily breach local laws, the ministry said it 'stands firm' against attempts to work around export controls or engage in illicit trade activities.
'While Malaysia maintains a neutral position on unilateral sanctions, companies operating here have been advised to adhere to other countries' unilateral export controls … to avoid any secondary sanctions on their businesses,' it said in a statement on Wednesday.
01:38
China a 'key market', says Nvidia CEO Huang during Beijing visit as US bans AI chips
China a 'key market', says Nvidia CEO Huang during Beijing visit as US bans AI chips
A team of four Chinese engineers allegedly flew into Malaysia from Beijing in March, each carrying a suitcase with 15 hard drives containing 80 terabytes' worth of spreadsheets, images and video clips to train an AI model, according to the New York-based newspaper.
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