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China has initiated a cybersecurity probe into Micron Technology, a leading American memory chip maker, in response to new restrictions imposed by US allies in Asia and Europe on the sale of crucial technology to Beijing. The Cyberspace Administration of China (CAC) will be reviewing products sold by Micron in the country to ensure the security of key information infrastructure supply chains and to prevent cybersecurity risks.
This move by China comes on the heels of Japan’s decision to restrict the export of advanced chip manufacturing equipment to countries including China, following similar actions taken by the United States and the Netherlands. As Washington and its allies tighten regulations on China’s semiconductor industry, Micron Technology finds itself under scrutiny.
Micron has assured full cooperation with the CAC and stands by the security of its products amidst the review. Despite the news impacting the company’s shares in the stock market, Micron remains steadfast in its commitment to operating normally and providing reliable products and services.
With more than 10% of its revenue coming from China, Micron had previously highlighted the risks associated with potential restrictions from the Chinese government on its operations in the region. The ongoing tensions around tech exports highlight the complex landscape that companies like Micron navigate in the global market.
Amidst these challenges, Beijing continues to work towards attracting foreign investments to bolster its economy. However, the Chinese government’s recent actions against foreign firms demonstrate its intent to enforce compliance with its regulations. This includes closing offices of US companies like Mintz Group and imposing penalties on firms such as Deloitte for alleged violations in their operations.
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