China has launched a cybersecurity probe into Micron Technology, one of the US's largest memory chip makers, in response to new restrictions on China's semiconductor industry announced by its US allies.
The Cyberspace Administration of China (CAC) will conduct an investigation into products sold by Micron in the country, citing concerns over potential security risks and the need to protect key information infrastructure supply chains. The probe is seen as a retaliation against Washington's moves to curb China's semiconductor sector, which is critical to Beijing's bid to become a tech superpower.
The US has already imposed restrictions on Chinese companies from buying advanced chips and chip-making equipment without a license, while Japan and the Netherlands have announced similar curbs on the export of key technology to countries including China. These measures are aimed at preventing China from accessing cutting-edge semiconductor materials and equipment that could be used for military purposes.
Micron, which derives over 10% of its revenue from China, has been warned by the company about potential risks associated with doing business in the country. The Idaho-based firm has said it is cooperating fully with the CAC's review and stands by the security of its products.
The move marks a growing trend of Chinese authorities exerting pressure on foreign companies to bring them into line with Beijing's agenda. Last month, authorities closed the Beijing office of US corporate intelligence firm Mintz Group and detained five local staff, while also suspending Deloitte's operations in the city for three months.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, the country is seeking to woo foreign investments as it grapples with mounting economic challenges. Beijing has been rolling out a welcome mat for global CEOs and promising them a "good environment and services", but the government has also exerted growing pressure on foreign companies to align with its agenda.
The probe into Micron Technology highlights the escalating tensions between China and the US over semiconductor exports, which are seen as a key battleground in the tech rivalry. As Beijing seeks to boost growth and job creation, it is facing mounting economic challenges, including slowing growth and high debt levels. The government's efforts to woo foreign investments and become more self-sufficient in key technologies are likely to be closely watched by investors and policymakers.
The Cyberspace Administration of China (CAC) will conduct an investigation into products sold by Micron in the country, citing concerns over potential security risks and the need to protect key information infrastructure supply chains. The probe is seen as a retaliation against Washington's moves to curb China's semiconductor sector, which is critical to Beijing's bid to become a tech superpower.
The US has already imposed restrictions on Chinese companies from buying advanced chips and chip-making equipment without a license, while Japan and the Netherlands have announced similar curbs on the export of key technology to countries including China. These measures are aimed at preventing China from accessing cutting-edge semiconductor materials and equipment that could be used for military purposes.
Micron, which derives over 10% of its revenue from China, has been warned by the company about potential risks associated with doing business in the country. The Idaho-based firm has said it is cooperating fully with the CAC's review and stands by the security of its products.
The move marks a growing trend of Chinese authorities exerting pressure on foreign companies to bring them into line with Beijing's agenda. Last month, authorities closed the Beijing office of US corporate intelligence firm Mintz Group and detained five local staff, while also suspending Deloitte's operations in the city for three months.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, the country is seeking to woo foreign investments as it grapples with mounting economic challenges. Beijing has been rolling out a welcome mat for global CEOs and promising them a "good environment and services", but the government has also exerted growing pressure on foreign companies to align with its agenda.
The probe into Micron Technology highlights the escalating tensions between China and the US over semiconductor exports, which are seen as a key battleground in the tech rivalry. As Beijing seeks to boost growth and job creation, it is facing mounting economic challenges, including slowing growth and high debt levels. The government's efforts to woo foreign investments and become more self-sufficient in key technologies are likely to be closely watched by investors and policymakers.