China Launches Cybersecurity Probe into US Chip Maker Micron as Tech Tensions Escalate
In a move that appears to be retaliation against US allies in Asia and Europe announcing new restrictions on the sale of key technology to Beijing, China has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement issued late Friday. The move aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security."
This latest development is part of a growing trend of tensions between the US and China over technology exports. Last month, Japan announced that it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands.
Washington has been taking steps to curb China's semiconductor industry, which is critical for Beijing's bid to become a tech superpower. The US government has banned Chinese companies from buying advanced chips and chipmaking equipment without a license, while the Netherlands has unveiled new restrictions on overseas sales of semiconductor technology.
The probe into Micron comes as shares in the company have taken a hit, falling 4.4% on Wall Street last week following news of the review. The Idaho-based firm derives more than 10% of its revenue from China and had warned earlier this month about the risks associated with doing business in the country.
China has previously criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing is seeking to woo foreign investments as part of efforts to boost growth and job creation amid mounting economic challenges.
The move by Micron's Chinese rivals comes as the company faces growing pressure from authorities over its operations in the country. Last month, authorities closed the Beijing office of a US corporate intelligence firm and detained five local staff, while days earlier they suspended Deloitte's operations in Beijing for three months and imposed a fine of $31 million.
Micron has stated that it is aware of the review and is cooperating fully with the CAC. The company added that it stands by the security of its products and that "Micron's product shipments, engineering, manufacturing, sales and other functions are operating as normal."
In a move that appears to be retaliation against US allies in Asia and Europe announcing new restrictions on the sale of key technology to Beijing, China has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement issued late Friday. The move aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security."
This latest development is part of a growing trend of tensions between the US and China over technology exports. Last month, Japan announced that it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands.
Washington has been taking steps to curb China's semiconductor industry, which is critical for Beijing's bid to become a tech superpower. The US government has banned Chinese companies from buying advanced chips and chipmaking equipment without a license, while the Netherlands has unveiled new restrictions on overseas sales of semiconductor technology.
The probe into Micron comes as shares in the company have taken a hit, falling 4.4% on Wall Street last week following news of the review. The Idaho-based firm derives more than 10% of its revenue from China and had warned earlier this month about the risks associated with doing business in the country.
China has previously criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing is seeking to woo foreign investments as part of efforts to boost growth and job creation amid mounting economic challenges.
The move by Micron's Chinese rivals comes as the company faces growing pressure from authorities over its operations in the country. Last month, authorities closed the Beijing office of a US corporate intelligence firm and detained five local staff, while days earlier they suspended Deloitte's operations in Beijing for three months and imposed a fine of $31 million.
Micron has stated that it is aware of the review and is cooperating fully with the CAC. The company added that it stands by the security of its products and that "Micron's product shipments, engineering, manufacturing, sales and other functions are operating as normal."
. They're basically going back and forth on tech exports, with Micron in the middle. It's like they're playing a game of economic chicken, where if one side backs down, the other will just keep pushing harder 
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. It's not like either side has a lot of leverage here, since Micron gets most of its revenue from China 
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so China is all like 'we're gonna probe this US chip maker' 
. It's like, China has been saying all this stuff about how much it hates restrictions on tech exports, but then they go and launch a probe themselves 
. Maybe they should've just gotten used to it by now 
. Anyways, Micron's Chinese rivals are probably just thrilled to see their competitor get scrutinized 
. Oh well, I guess this is what happens when you're trying to become a tech superpower 
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! China launching a probe into Micron? Like, what's next? 
It's all about the tech game, right now. I feel bad for Micron tho, 4.4% drop in shares on Wall Street? That's crazy 
. The US and China are like two titans fighting it out in the tech world 
. It's not just Micron either - what about all the other US companies that are doing business in China? Are they next on the chopping block too? 
. It's also interesting that this comes just as the US and Europe are cracking down on China's semiconductor industry... feels like we're playing a game of tech chess where everyone's trying to outmaneuver each other 
. What do you guys think is driving this move by China? Is it just about retaliating against the US, or is there something more going on beneath the surface 
they're investigating micron for being too american 
can't even sell chips to them without getting checked 
this move from China feels super retaliatory... like they're trying to hurt Micron & US allies in Asia & Europe. The fact that it comes after new restrictions on tech exports from the US & Japan makes me think it's all about trade & power 
They're basically trying to show that China isn't messing around when it comes to its tech superpower ambitions.
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. But what really gets me is that this just seems like another example of tech tensions escalating between the US and China 
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China launching cybersecurity probe into Micron tech firm is lowkey terrifying for US chip industry. This move is a clear retaliation against US allies who are trying to hold back China's growing semiconductor power. It's like they're saying, "Hey, you wanna limit our growth? We'll just take a piece of your own cake". 
The fact that Micron's shares have already taken a hit just adds to the chaos. I'm worried about what other tech firms will be next on China's radar