Hong Kong
cnn
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China has launched a cybersecurity investigation against Micron Technology, one of the largest memory chip manufacturers in the United States. in apparent 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, according to a statement by the control body late on Friday.
The measure aims to “ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security,” it noted.
It came on the same day that Japan, a US ally, said it would restrict the export of advanced chip-making equipment to countries such as China, following similar moves by the United States and the Netherlands.
Washington and its allies have announced restrictions on China’s semiconductor industry, striking at the heart of Beijing’s bid to become a technological superpower.
Last month, the Netherlands also unveiled new restrictions on foreign sales of semiconductor technology, citing the need to protect national security. In October, the United States banned Chinese companies from purchasing advanced chips and chip-making equipment without a license.
Micron told CNN it was aware of the review.
“We are in communication with the CAC and we are cooperating fully,” he said, adding that he defends the safety of his products. “Micron’s product shipments, engineering, manufacturing, sales and other functions are operating normally.”
Actions in Micron plunged 4.4% on Wall Street on Friday following the news, the biggest drop in more than three months. On Monday they closed another 1.2% lower. Micron derives more than 10% of its revenue from China.
in a previous presentationthe Idaho-based company had warned of such risks.
“The Chinese government may restrict us from participating in the Chinese market or may prevent us from competing effectively with Chinese companies,” he said last week.
China has sharply criticized restrictions on technology exports and said last month that it “firmly opposes” such measures.
In its efforts to boost growth and job creation, Beijing is seeking to attract foreign investment while grappling with growing economic challenges. New Premier Li Qiang and several senior economic officials have been welcoming global CEOs and promising that they would “provide a good environment and services.”
But Beijing has also put increasing pressure on foreign companies to conform to its agenda.
Last month, authorities closed the Beijing office of Mintz Group, an American corporate intelligence firm, and detained five local employees.
Days earlier, they suspended Deloitte’s operations in Beijing for three months and imposed a $31 million fine for alleged failures in its work auditing a troubled state-owned debt manager.
