Malaysia has reportedly backed away from a planned AI collaboration with Chinese tech giant Huawei, just as Huawei denies allegations of violating U.S. chip export controls. This comes amid escalating tensions between the U.S. and China over tech dominance, putting smaller nations like Malaysia in a tricky spot between global superpowers.

Editor’s Note: This isn't just about Malaysia and Huawei—it's another ripple in the ongoing U.S.-China tech cold war. Smaller economies are increasingly caught in the middle, forced to weigh economic opportunities against political risks. If even neutral players like Malaysia are reconsidering partnerships, it signals how deep the divide has become.