Malaysia Caught in US-China AI Tech Rivalry as Huawei Deal Falters

Malaysia’s plan to deploy 3,000 Huawei Ascend GPU-powered AI servers by 2026, announced by Deputy Communications Minister Teo Nie Ching, was abruptly retracted without explanation, highlighting the nation’s delicate position in the escalating US-China tech rivalry. Teo’s office backtracked after the announcement, initially reported by Malaysia-China Insight, drew scrutiny from Washington, wary of China’s growing AI influence. A Huawei representative denied selling Ascend chips in Malaysia.

AI tech rivalry

David Sacks, a Trump adviser, warned on X, “As I’ve been warning, the full Chinese stack is here,” praising the reversal of Biden-era chip export restrictions to Malaysia as timely. The US Commerce Department’s shifting guidance, initially warning that using Huawei chips globally could violate export controls, added pressure. Malaysia is now a test case for the Trump administration’s AI diplomacy, aiming to flood global markets with American hardware to counter Huawei’s rise, as Nvidia’s CEO Jensen Huang noted, “China is right behind” in the AI race.

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