China Launches Investigation into Micron Technology for Cybersecurity Concerns as Tech Tensions Rise
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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 apparent retaliation comes after US allies in Asia and Europe announced new restrictions on the sale of key technology to Beijing.
The Cyberspace Administration of China (CAC) has announced that they will review products sold by Micron in the country. The purpose of this move is to ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security.
The action by China comes on the same day that Japan, a US ally, announced restrictions on the export of advanced chip manufacturing equipment to countries including China. This follows similar moves by the United States and the Netherlands.
The restrictions imposed by Washington and its allies are aimed at curbing China’s semiconductor industry, which is central to Beijing’s ambitions of becoming a tech superpower. Last month, the Netherlands also revealed new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. The United States has also implemented a ban on Chinese companies from buying advanced chips and chipmaking equipment without a license.
Micron, in response to the review, stated that they are aware of the situation and are fully cooperating with the CAC. They also reassured that their products are secure and that their business functions are operating normally. However, the news of the cybersecurity probe caused Micron’s shares to sink by 4.4% on Wall Street.
It is important to note that Micron derives more than 10% of its revenue from China. In an earlier filing, the company had warned of the potential risks of government restrictions on their participation in the Chinese market and competition with Chinese companies.
China has strongly criticized the restrictions on tech exports implemented by the US and its allies. They “firmly oppose” such measures, stating that they are detrimental to global economic growth.
While China aims to attract foreign investments for growth and job creation, they have also increased pressure on foreign companies to align with their agenda. Recent actions include the closure of the Beijing office of a US corporate intelligence firm and the suspension of Deloitte’s operations in Beijing.
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