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Will Malaysia’s potential Huawei AI deal risk clash over US trade pact?

Choosing Huawei chips in a US$494 million sovereign AI project could breach export control assurances given to Washington

3-MIN READ3-MINIman Muttaqin YusofPublished: 6:22pm, 8 Sep 2026Malaysia’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 Southeast Asia.

State-linked Telekom Malaysia was selected as the key operator after a public tender, while officials from Malaysia’s National Security Council are expected to travel to Washington later this month to discuss the issue, the US-based news agency reported.

Read original at South China Morning Post

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