China has launched a thorough cybersecurity investigation into US-based semiconductor giant Micron Technology, amid heightened tensions between Washington and Beijing.
The move comes as China seeks to bolster its domestic chip industry in response to increased restrictions on tech exports to the country by the United States, Japan, and the Netherlands. In a bid to counter these measures, the Chinese government will review products sold by Micron in the nation, citing concerns over cybersecurity risks and the need to safeguard key information infrastructure supply chains.
Micron, which derives more than 10% of its revenue from China, has already warned investors about such potential risks in an earlier filing. The company stated that the Chinese government may restrict it from participating in the market or prevent it from competing effectively with local firms.
As tensions between Washington and Beijing escalate, shares in Micron plummeted by 4.4% on Wall Street following news of the probe, marking the largest decline in over three months. On Monday, they fell another 1.2%.
China has been vocal in its criticism of such restrictions, calling them "unfair" and "unjustified." In an effort to woo foreign investors, Beijing is promoting itself as a favorable destination for growth and job creation.
However, the Chinese government has also taken steps to enforce compliance with its policies among foreign companies. Last month, authorities closed the Beijing office of a US corporate intelligence firm, Mintz Group, and detained local staff. Additionally, Deloitte's operations in Beijing were suspended for three months, along with an $31 million fine for alleged lapses in auditing work.
The probe into Micron Technology is part of China's broader efforts to build its domestic tech industry and reduce its dependence on foreign components. As the nation grapples with economic challenges, Beijing is seeking to enhance its global influence through strategic investments and partnerships.
With US allies in Asia and Europe announcing curbs on China's semiconductor industry, Micron faces significant headwinds amid rising tensions between Washington and Beijing. The company's cooperation with Chinese authorities will be closely watched as it navigates the complex web of regulations and diplomatic pressures in play.
The move comes as China seeks to bolster its domestic chip industry in response to increased restrictions on tech exports to the country by the United States, Japan, and the Netherlands. In a bid to counter these measures, the Chinese government will review products sold by Micron in the nation, citing concerns over cybersecurity risks and the need to safeguard key information infrastructure supply chains.
Micron, which derives more than 10% of its revenue from China, has already warned investors about such potential risks in an earlier filing. The company stated that the Chinese government may restrict it from participating in the market or prevent it from competing effectively with local firms.
As tensions between Washington and Beijing escalate, shares in Micron plummeted by 4.4% on Wall Street following news of the probe, marking the largest decline in over three months. On Monday, they fell another 1.2%.
China has been vocal in its criticism of such restrictions, calling them "unfair" and "unjustified." In an effort to woo foreign investors, Beijing is promoting itself as a favorable destination for growth and job creation.
However, the Chinese government has also taken steps to enforce compliance with its policies among foreign companies. Last month, authorities closed the Beijing office of a US corporate intelligence firm, Mintz Group, and detained local staff. Additionally, Deloitte's operations in Beijing were suspended for three months, along with an $31 million fine for alleged lapses in auditing work.
The probe into Micron Technology is part of China's broader efforts to build its domestic tech industry and reduce its dependence on foreign components. As the nation grapples with economic challenges, Beijing is seeking to enhance its global influence through strategic investments and partnerships.
With US allies in Asia and Europe announcing curbs on China's semiconductor industry, Micron faces significant headwinds amid rising tensions between Washington and Beijing. The company's cooperation with Chinese authorities will be closely watched as it navigates the complex web of regulations and diplomatic pressures in play.
! Like, China is basically saying they're gonna review all these US chips sold to them and it's a huge deal for Micron because like 10% of their revenue comes from there 
. And now their shares are plummeting on Wall Street like 4.4% in one day?! That's insane 
! It's like, China is trying to protect its domestic chip industry but also making it super hard for US companies like Micron to operate there 
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. They're closing offices of foreign firms and fining them millions - that's not cool 
. And now Micron is just trying to navigate all these regulations and diplomatic pressures without even knowing what they'll get hit with next 
. And it's not just Micron - other US companies are feeling the squeeze too 
. I don't know what's gonna happen next but one thing's for sure: this whole situation is getting super interesting 
!
. i mean, can't they just have their own chips without trying to control everyone else? it's like, what's the point of having a strong tech industry if you're just gonna try to strangle the competition? 
, like, hello, that's business. if they don't want chinese companies competing with them, maybe they should've thought of that before they started exporting all their tech goodies 
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they're not just looking for cybersecurity risks but also trying to control what foreign companies can do here in china. micron's shares plummeting by 4.4% is huge news, i'm kinda worried about the impact on the company and its employees. china's been trying to woo us with all these promotions of growth and job creation, but it seems like they're playing a double game 
That's gotta be tough for investors. It just seems like it's all getting a bit too complicated and tense between the US and China.
It just seems like it's all getting a bit too heated...
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. I wonder if this probe will lead to some kind of cooperation or will it just be another hurdle for the company to overcome 
I'm so done with these probes! Can't a company just do its thing without some country breathing down its neck? China launching an investigation on Micron, one of the biggest semiconductor giants, is just ridiculous 
. It's all so... complicated 
. Can't we just have some clarity on the rules of the game? 
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. The US is cutting off access to key markets, and now China's coming after them too 
. They want to build their own tech industry and be more independent, which makes sense 
.
.
And let's be real, the US is just trying to stifle Chinese innovation (or so they claim). The whole "unfair" and "unjustified" rhetoric from Beijing sounds like they're clutching their virtual pearls in outrage 
.
... and now shares are tankin 
... but at what cost? 
... and it's not just micron, other US-based companies r gettin scrutinized too 
... like, what's next?