Micron Technology is under scrutiny from Chinese authorities over cybersecurity concerns, as tensions between the US and China continue to escalate in the tech sector.
The Cyberspace Administration of China (CAC) has launched a probe into Micron's products sold in the country, citing a need to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security." The move is seen as retaliation against US allies in Asia and Europe, which have announced new restrictions on the sale of key technology to China.
In recent weeks, several countries, including Japan, the United States, and the Netherlands, have imposed curbs on China's semiconductor industry, aiming to limit Beijing's bid to become a tech superpower. These measures are part of a broader effort by Washington and its allies to curb China's growing influence in the global tech sector.
Micron, one of America's largest memory chip makers, derives more than 10% of its revenue from China, making it a key target for Chinese authorities. The company has warned of such risks in an earlier filing, stating that the Chinese government may restrict its participation in the China market or prevent it from competing effectively with Chinese companies.
Shares in Micron have fallen sharply following the news, with a 4.4% drop on Wall Street last Friday and another 1.2% decline on Monday. The company has told CNN that it is aware of the review and is cooperating fully, while also standing by the security of its products.
China's criticism of restrictions on tech exports has been strong, with Beijing saying it "firmly opposes" such measures. However, the country is also exerting pressure on foreign companies to bring them into line with its agenda, including detaining staff from US corporate intelligence firm Mintz Group and suspending Deloitte's operations in Beijing for three months.
As tensions between the US and China continue to rise, Micron's situation highlights the challenges faced by global companies operating in a rapidly changing tech landscape. With Beijing pushing for greater influence in the sector, companies like Micron must navigate complex regulatory environments while also competing with Chinese rivals.
The Cyberspace Administration of China (CAC) has launched a probe into Micron's products sold in the country, citing a need to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security." The move is seen as retaliation against US allies in Asia and Europe, which have announced new restrictions on the sale of key technology to China.
In recent weeks, several countries, including Japan, the United States, and the Netherlands, have imposed curbs on China's semiconductor industry, aiming to limit Beijing's bid to become a tech superpower. These measures are part of a broader effort by Washington and its allies to curb China's growing influence in the global tech sector.
Micron, one of America's largest memory chip makers, derives more than 10% of its revenue from China, making it a key target for Chinese authorities. The company has warned of such risks in an earlier filing, stating that the Chinese government may restrict its participation in the China market or prevent it from competing effectively with Chinese companies.
Shares in Micron have fallen sharply following the news, with a 4.4% drop on Wall Street last Friday and another 1.2% decline on Monday. The company has told CNN that it is aware of the review and is cooperating fully, while also standing by the security of its products.
China's criticism of restrictions on tech exports has been strong, with Beijing saying it "firmly opposes" such measures. However, the country is also exerting pressure on foreign companies to bring them into line with its agenda, including detaining staff from US corporate intelligence firm Mintz Group and suspending Deloitte's operations in Beijing for three months.
As tensions between the US and China continue to rise, Micron's situation highlights the challenges faced by global companies operating in a rapidly changing tech landscape. With Beijing pushing for greater influence in the sector, companies like Micron must navigate complex regulatory environments while also competing with Chinese rivals.
... it's just another example of how everything is a game of cat and mouse between China and the West. Like, what's next? 
They'll probably start snooping around everyone's servers and then claim they're just protecting national security 
. And good luck to Micron, trying to navigate all these twists and turns while their shares are tanking 
... it's not like they didn't see this coming 
. The whole thing just feels like a big trade war for tech supremacy 
, with innocent companies getting caught in the middle 
.
I think it's kinda weird that China's being all sensitive about Micron's cybersecurity, considering how much they're doing to limit foreign companies' access to their market 
It's like, if you're so concerned about security, why are you trying to control who does business with your country? 
And what's up with these "retaliation" measures against US allies? It just seems like China's playing the victim here 
It's not exactly a level playing field, is it? 
china is like really cracking down on americans in tech and it's making me nervous 
. But then again, they're basically punishing a US company for not meeting their standards? It doesn't seem too fair to me 
.
. I mean, it's not like Micron's actually doing anything wrong - they're just trying to make a living 
I don't know, man... it feels like we're stuck in this never-ending cycle of one-upmanship 
.
It's hard to predict what's going to happen next, but one thing's for sure: companies need to be prepared to adapt quickly to these changing regulatory landscapes.
#TechTensionsRising #CybersecurityMatters #GlobalCompliance
come on, 10% of revenue from China? that's not even enough to be considered "key" 
and by the way, those countries imposing curbs on china's semiconductors industry are just fueling the fire... more escalation is all we need 
meanwhile micron's shares are tanking and it's just soooo stressful 
. but at the end of the day, isn't that what we're all about - competition? 
So I'm thinking, what's up with all these trade tensions and restrictions? It's like, one minute China's saying we can't sell them our tech, next they're accusing us of being cyber spies 
. And what about all these other countries getting involved? It's like the tech sector is playing some kind of geopolitical game 
. Can't we just have a straightforward conversation about trade agreements and security protocols without all the drama? 
This is so stressful for Micron and its employees. I mean, can you imagine being in their shoes? Your company's doing nothing wrong, but China is still scrutinizing you anyway. It's like they're trying to make an example out of them. 
And it's not just Micron - what about all the other companies affected by these tensions? The US and China are essentially playing a game of trade war with tech, and everyone else is caught in the middle