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China has initiated a cybersecurity probe into Micron Technology, a major American memory chip maker. This move appears to be in retaliation after US allies in Asia and Europe imposed new restrictions on the sale of critical technology to Beijing. The Cyberspace Administration of China (CAC) will be examining products sold by Micron in the country to ensure the security of key information infrastructure supply chains and prevent cybersecurity risks stemming from hidden product issues to safeguard national security.
The crackdown from China comes on the heels of Japan announcing restrictions on the export of advanced chip manufacturing equipment to various countries, including China, following similar actions by the United States and the Netherlands. These measures are aimed at curbing China’s semiconductor industry, a central component of its ambition to become a tech superpower.
Micron Technology, in response to the review, has affirmed that its products are secure and is fully cooperating with the CAC. Despite this, shares in Micron took a hit on Wall Street, falling 4.4% on Friday and an additional 1.2% on Monday. The company generates over 10% of its revenue from China and had previously cautioned about the risks associated with such developments.
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China has reiterated its firm opposition to restrictions on tech exports, noting the adverse effects on global trade and growth. Despite efforts to attract foreign investments and foster a favorable business environment, Beijing has also increased pressure on foreign companies to align with its policies. Recent actions against US firms, including the closure of offices and regulatory penalties, indicate China’s stance on upholding its regulations within its borders.
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