China Launches Cybersecurity Investigation into US Chip Maker Micron Technology amidst Escalating Tech Tensions
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In recent news, China has launched a cybersecurity probe into Micron Technology, one of America’s largest memory chip makers. This move appears to be in retaliation after US allies in Asia and Europe announced new restrictions on the sale of key technology to Beijing. The Cyberspace Administration of China (CAC) will review products sold by Micron in the country to ensure the security of key information infrastructure supply chains and prevent cybersecurity risks.
The restrictions placed on China’s semiconductor industry by the United States and its allies aim to hinder Beijing’s bid to become a tech superpower. Last month, the Netherlands also implemented new restrictions on overseas sales of semiconductor technology to protect national security. Micron, aware of the review, stated that it stands by the security of its products and is cooperating fully with the CAC.
The news of the cybersecurity probe caused a 4.4% drop in Micron’s shares on Wall Street. This decline in value reflects the potential impact on Micron’s revenue, as the company derives more than 10% of its income from China. In a previous filing, Micron had warned about the risks of Chinese government restrictions preventing effective competition with Chinese companies.
China has expressed strong opposition to restrictions on tech exports, emphasizing its firm opposition to such measures. However, the country is also working to attract foreign investments to boost economic growth and job creation. While Beijing welcomes global CEOs and promises to provide a good environment and services, it has also exerted pressure on foreign companies to align with its agenda.
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