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Malaysia Tightens Certificate of Origin Requirement Amid U.S. Tariff Pressures

Despite Xi Jinping’s visit to Malaysia in April and his appeal for Malaysia’s help in working against U.S. tariffs, Malaysia recently announced that it will tighten control over certificates of origin for goods exported to the U.S. This will help to prevent China from using Malaysia as a country-of-origin in attempts to circumvent U.S. tariffs.

On May 6, Malaysia’s Ministry of Investment, Trade and Industry (MITI) announced that it will now serve as the sole authority for issuing Non-Preferential Certificates of Origin (NPCO) for goods exported to the U.S. Chambers of commerce, trade associations, and other previously designated entities will no longer be permitted to issue such certificates. MITI also stated that Malaysia will implement additional measures to strengthen customs compliance, including investigations and enforcement actions to curb illegal transshipment of goods through Malaysian customs to the U.S.

Amid growing U.S. tariff pressures, many Chinese companies have turned to Malaysia as a transshipment hub to circumvent trade barriers. Typically, these firms collaborate with local freight forwarders and trading companies, using NPCOs issued by Malaysian chambers of commerce to reclassify the products’ origin as Malaysian.

This new policy may make this workaround no longer a viable path for Chinese exporters seeking to avoid tariffs.

Source: Sina, May 6, 2025
https://finance.sina.com.cn/tech/roll/2025-05-06/doc-inevrkuv4538648.shtml

Briefings | | |   Economy/Resources Geo-Strategic Trend US-China Relations

Former Harvard Professor Convicted in US Joins Tsinghua University in China

Charles Lieber, the former Harvard University chemistry department chair who was convicted in the US for concealing his ties to China’s Thousand Talents Program, has been appointed as a chair professor at Beijing’s Tsinghua University.

Lieber is a renowned nanoscience researcher who won the Wolf Prize in Chemistry in 2012 and was considered a potential Nobel Prize candidate. He was convicted in the US for lying to federal authorities in 2018 and 2019 about his involvement in China’s Thousand Talents Program and his relationship with Wuhan University of Technology.

According to previous media reports, the US Department of Justice alleged that Lieber signed a three-year contract with the Chinese talent recruitment program. The agreement included establishing a research laboratory at Wuhan University of Technology, publishing papers, organizing international conferences, and applying for patents on behalf of the university. He reportedly received approximately $50,000 monthly plus $150,000 in living expenses.

In December 2021, a jury found Lieber guilty of tax crimes and making false statements about his work in Wuhan. He was sentenced in April 2023 to a fine and two years of supervised release, with the first six months under house arrest.

According to an announcement on the Tsinghua Shenzhen International Graduate School website on May 1, Lieber has joined the institution full-time. The appointment ceremony took place on April 28, where he received certificates naming him as a Tsinghua University chair professor and a researcher at the Shenzhen Medical Sciences Academy.

During the ceremony, Lieber expressed that his goal for the coming years is to “build a global technology center and realize more scientific dreams” with colleagues in Shenzhen. He stated that he is ready to begin a new research journey and eager to start work immediately.

Source: Central News Agency (Taiwan), May 4, 2025
https://www.cna.com.tw/news/acn/202505040113.aspx

Briefings | | |   US-China Relations

Lianhe Zaobao: U.S. Sanctioned A Third Chinese Refinery Importing Iranian Oil

Singapore’s leading Chinese-language newspaper, Lianhe Zaobao, recently reported that the United States has imposed sanctions on a third independent Chinese oil refinery and several port operators accused of importing Iranian oil. The move reflects the broader impact of Washington’s intensified pressure on Tehran’s nuclear program, with China – Iran’s largest oil customer – being directly affected.

This latest round of sanctions targets Hebei Xinhai Chemical Group, an independent refinery, along with three port companies operating in Dongying Port, Shandong Province. The companies are accused of purchasing or facilitating the transport of hundreds of millions of dollars’ worth of Iranian crude. Since 2024, Xinhai Chemical has reportedly received several shipments of Iranian oil – over one million barrels in total – delivered through so-called “shadow fleets” via Dongying Port.

A spokesperson for the Chinese Embassy in the U.S. condemned the sanctions, stating that China has consistently opposed the U.S. practice of imposing unilateral, extraterritorial sanctions and called on Washington to stop interfering in legitimate economic and trade cooperation between China and Iran.

Despite Iranian oil making up approximately 90 percent of Iran’s exports, Chinese customs data has shown no recorded imports from Iran since July 2022. Instead, Iranian crude is often rebranded as originating from countries like Malaysia. In recent months, the U.S. has already sanctioned two other independent Chinese refineries located in Shandong Province.

Source: Lianhe Zaobao, May 9, 2025
https://www.zaobao.com.sg/news/china/story20250509-6316676

Briefings | | |   US-China Relations

RFI Chinese: China’s Exports to the U.S. Fell 17.6 Percent in April

Radio France Internationale (RFI) Chinese Edition recently reported that China’s exports to the United States dropped by 17.6 percent in April compared to March, according to newly released data from China’s General Administration of Customs. Exports to the U.S. totaled US$33 billion last month, down from US$40.1 billion in March, as trade tensions between Beijing and Washington persist.

Some economists noted that the full impact of U.S. tariffs may not yet be reflected in April’s figures, partly due to transshipments through third countries and trade contracts signed prior to the implementation of the tariffs. However, analysts widely expect trade performance to deteriorate further in the coming months.

On the import side, China’s purchases declined by just 0.2 percent in April—less than the six percent drop forecast by analysts. Given that imports are seen as a key indicator of domestic consumer demand, this smaller-than-expected decrease has drawn close attention.

To counter the economic headwinds stemming from sluggish consumption and ongoing trade friction with the U.S., China’s central bank has recently introduced measures to stimulate the economy. These include a cut to the reserve requirement ratio (RRR) to encourage bank lending and a reduction in mortgage rates aimed at easing pressure on the housing market.

Source: RFI Chinese, May 9, 2025
https://tinyurl.com/uy6c4xbe

Briefings | | |   Economy/Resources US-China Relations

People’s Daily: China Does not Expect Immediate Result in Tariff Talk with the U.S.

People’s Daily, the official newspaper of the Central Committee of the Chinese Communist Party, published a commentary under its official pen name Zhong Sheng– a homophone for “China’s Voice” – regarding the upcoming tariff negotiations between China and the United States. The article emphasized that China is “in no rush” and does not expect an immediate result. Below are key excerpts:

“No country will forfeit its legitimate development rights simply to appease another nation’s unreasonable demands.

“Dialogue is essential for resolving differences, but it is unrealistic to expect all problems to be solved in just one or two rounds of talks. China fully understands the complexity of such negotiations. As an old Chinese saying goes, ‘Listen to what they say and watch what they do’ – true sincerity is demonstrated through action.

“If the U.S. truly wants to resolve issues through dialogue, it must face up to the serious negative impact that unilateral tariffs have on itself and the world. It should respect international trade rules, fairness and justice, as well as rational voices from all sectors. It needs to show genuine sincerity in talks and correct its mistakes, rather than saying one thing and doing another, or changing its stance unpredictably.

“China has always remained open to dialogue and had the patience, composure, and confidence to pursue it. Whether facing confrontation or negotiation, China’s determination to safeguard its development interests, uphold fairness and justice, and protect the global trade order will not waver.”

Source: People’s Daily, May 10, 2025
http://world.people.com.cn/n1/2025/0510/c1002-40476882.html

Briefings | | |   US-China Relations

China Condemns CIA Recruitment Videos as “Blatant Political Provocation”

China has sharply condemned the U.S. Central Intelligence Agency (CIA) for releasing two Chinese-language videos aimed at recruiting Chinese officials as spies. The videos, circulated on social media platforms, were denounced by Chinese Foreign Ministry spokesperson Lin Jian as a “blatant political provocation.”

At a regular press briefing on May 6, Lin accused the United States of long engaging in “despicable tactics” to steal state secrets, meddle in other nations’ internal affairs, and undermine foreign governments. He called the CIA’s latest outreach campaign “yet another piece of self-incriminating evidence” of these efforts.

“The U.S. not only maliciously slanders and attacks China, but also openly lures Chinese citizens into betrayal—directly targeting government personnel,” Lin said. “This constitutes a serious violation of China’s national interests.”

He emphasized that China would take all necessary steps to “resolutely combat infiltration and sabotage activities by anti-China forces abroad” and “firmly defend national sovereignty, security, and development interests.”

The two three-minute videos released by the CIA are titled “Reasons to Cooperate: Become the Master of Your Fate” and “Reasons to Cooperate: Create a Better Vision.” The first depicts a high-ranking Chinese official suffering from anxiety during a banquet amid perceived internal crises within the Communist Party. The second attempts to appeal to lower-level bureaucrats with limited career prospects.

CIA Director John Ratcliffe expressed confidence that the videos would break through China’s digital censorship infrastructure — often referred to as the “Great Firewall” — and reach their intended audience. The CIA has also established anonymous hotlines to encourage Chinese nationals to share intelligence.

Source: Central News Agency (Taiwan), May 6, 2025
https://www.cna.com.tw/news/acn/202505060292.aspx

Briefings | | |   US-China Relations

American Chamber of Commerce in China: One Fifth of U.S. Firms No Longer Consider China a “Priority Investment Destination”

On April 25, the American Chamber of Commerce in China released its “2025 White Paper on American Companies in China,” jointly authored by representatives from over 100 member companies.

The white paper notes that rising tensions between China and the United States have, for the fifth consecutive year, remained the top business challenge facing U.S. companies operating in China – surpassing compliance risks and competitive pressure from Chinese firms.

Under the influence of geopolitical risks, 49 percent of surveyed companies still include China among their top three global investment destinations. However, the share of companies that consider China their number one investment destination has dropped by 6 percentage points from the previous year.

Furthermore, 21 percent of companies no longer consider China a priority investment destination – double the pre-COVID level. The white paper describes this trend as “alarming.”

Source: Lianhe Zaobao, April 25, 2025
https://www.zaobao.com.sg/news/china/story20250425-6245113

Briefings | | |   Economy/Resources US-China Relations

Xinhua: US Soft Power Is Evaporating

Xinhua News Agency, the Chinese Communist Party’s official state news agency published an article, titled “U.S. Soft Power Is Evaporating – The Decline of U.S. Soft Power and the Fall of Hegemony.” Below are some key excerpts from the article.

Recently, the decline of United States’ soft power has become a frequently mentioned topic among Western scholars and media outlets, with much of the criticism directed at the Trump administration.

In fact, the U.S. has long pursued hegemonic interests through the abuse of military intervention and economic coercion in international affairs. Meanwhile, domestic political polarization, social division, and widespread dysfunction have increasingly revealed the true nature of the U.S. to the world. According to international public opinion and experts, the decline of American soft power is now widely acknowledged and seen as irreversible – Trump’s return to power has only accelerated the downfall of U.S. hegemony.

Joseph Nye, the former dean of Harvard’s Kennedy School and the scholar who coined the term “soft power,” believes that a nation’s soft power depends on the attractiveness of its culture and values, as well as the perceived legitimacy of its policies. In a recent commentary for the Financial Times, Nye criticized President Trump for expressing interest in “buying” Greenland, coveting the Panama Canal, and bullying allies and developing nations. However, these policies are driven by “coercion and transaction,” that are neither legitimate nor reasonable and have seriously damaged U.S. soft power.

Since taking office, the Trump administration has wielded tariffs like a weapon, creating chaos and uncertainty worldwide.

The disorder and inconsistency of Trump’s governance have further disillusioned the public. His large-scale dismissal of federal employees and proposals to dismantle departments like the Department of Education have been labeled by U.S. media as “purges.” The “Signal Gate” scandal exposed top U.S. officials using group chats on messaging apps to discuss and plan military operations. His administration’s immigration deportation efforts led to legal battles, with the Justice Department even invoking a wartime law over 200 years old to justify its actions.

Yet the Trump administration shows little concern over the erosion of U.S. soft power.

As the U.S. increasingly relies on coercion and even force in its foreign policy, its national strength will be further drained. Its increasingly aggressive and domineering image will continue to undermine its soft power – ultimately hastening the end of American hegemony.

Source: Xinhua, April 29, 2025
http://www.xinhuanet.com/fortune/20250429/9b72ee417e60472cad54f8829213786c/c.html

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