And products and chemical products from china

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and products and chemical products from China dominated the Malaysian market with imports of US$18.92 billion, US$4.08 billion and US$2.64 billion. In the US dollar, electromechanical products increased by 17.2%, base metals and products decreased by 4.4%, and chemical products increased by 14.9%. In Malaysia, China still faces chemical competition, plastics, optical instruments and food from countries such as Japan, the United States, France, Singapore and Malaysia. 4.0 BALANCE OF TRADE The balance of trade is the difference between the value of all the goods and services a country exports and the goods and services it imports. A country that exports more than it imports creates a positive balance of trade, which is called a trade surplus. When a country takes in more than it exports, it has a negative balance of trade, which is called a trade deficit. Whether or not a trade deficit or surplus is a bad or good thing depends on the current phase of a country’s business cycle. Based on above, in 2017 total exports are RM934.93 billion while total imports are RM836.42 billion so that Malaysia creates trade surplus in this year. Next, in 2018 total exports also higher than total imports such as RM998.01 billion more than RM877.74 billion so that it also called trade surplus. Its shows Malaysia not depended on others countries. 13
Figure 9: shows total export and import of Malaysia in 2017 and 2018 2017 2018 934.93 998.01 836.42 877.74 Total Export and Import in 2017 and 2018 EXPORT IMPORT 14
Figure 10: shows Malaysia’s Balance of Trade in 2017 and 2018 98.51 120.27 Malaysia's Balance of Trade in 2017 and 2018 2017 2018 Reprinted from Malaysia External Trade Statistics by MATRADE, retrieved from 5.0 Issues of Trade War Between China and United State which Affected Malaysia 15
China is the most important trading partner for Malaysia before the United States. According to data released by the Malaysian Bureau of Statistics, the bilateral import and export volume of goods between Malaysia and China was $67.75 billion in 2017, up 16.6 percent. Besides, US was the third largest country which contributed 9.5 percent or RM88.7 billion of total Malaysia export. Unfortunately, a trade war happened between these two countries. More and less this situation affected Malaysia export and import. They keep imposing a lot of tariffs on goods traded between them. US President, Donald Trump accused that China was violating their intellectual rights. China with its advantage of technology produced a ‘counterfeit’ product or artificial product. They violated the US intellectual right with producing a product that is based on originally brands from the US with a slightly cheaper than US but in low quality. This product will be exported to the most including Malaysia. Trump was unsatisfied that his country is flooded with China import goods. This situation created a surplus because more on the import side compared to the export of the US. However, the situation getting more tighter due to China President, Xi Jinping did not execute any action or reducing the surplus.

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