As GDP relies on exports, in order to avoid the abrasive effects of the China-US trade war, it needs to improve competitiveness and find new markets.

The Ministry of Industry and Trade forecast that the steel sector will maintain annual growth of nearly 20 percent this year, including construction steel (up 10 percent), cold rolled coil (5 percent), straight welded steel pipes (15 percent), galvanised iron sheet and colour coated paint (12 percent). Hot rolled coil is expected to see the strongest growth of up to 154 percent.

China's commerce ministry said a U.S. decision to subsidise renewable energy firms and impose tariffs on imported products has seriously distorted the global market and harmed China's interests, firing the latest shot in a broader trade conflict.

Pundits have cautioned that Malaysia could become an unlikely victim of a full-blown trade war between the United States and China, taking a contrasting viewpoint from Prime Minister Tun Dr Mahathir Moha¬mad, who believes it will benefit the local economy.

China`s exports surged more than expected in July despite U.S. duties and its closely watched surplus with the United States remained near record highs, as the world`s two major economic powers ramp up a bitter dispute that some fear could derail global growth.

Indonesia is looking to seize opportunities from the US-China trade war to increase its exports and foreign exchange, while replacing imported goods by locally-manufactured counterparts.

Last week, international media reported that the Trump administration was considering slapping a 25 per cent tariff on US$200 billion of imported Chinese goods, 10 per cent higher than its initial proposal, in a bid to pressure Beijing to make trade concessions.

Trump tariff fallout: India becomes steel dumping ground; imports from China jump 67%, Japan 47% and Korea 35%

The escalating trade war between the U.S. and China has prompted the Association of Southeast Asian Nations to call for accelerated negotiations on the Regional Comprehensive Economic Partnership, a free trade framework involving ASEAN and six partner countries.

China said on Wednesday that "blackmail" wouldn't work and that it would hit back if the United States takes further steps hindering trade, as the Trump administration considers slapping a 25 per cent tariff on US$200 billion worth of Chinese goods.