Chinese executives have been meeting Malaysian officials for assurances they can avoid increased US tariffs if they relocate their battery, medical devices and semiconductor manufacturing to the country.

The companies have asked Malaysian government officials to lobby against the US imposing tariffs on products made or assembled in Malaysia by Chinese groups, the Financial Times reported, citing three people familiar with the matter.

It came after the Biden administration last month announced steep tariff increases on various Chinese imports including EV batteries and computer chips, some of which will take effect on 1 August.

It was reported the total tariff on Chinese EVs would rise to 102.5% from 27.5%.

As the US has doubled down on efforts to reduce trade with China by increasing tariffs, imports from southeast Asian countries have surged.