US Chip Maker Micron Under Fire from China Amid Escalating Tech Tensions
The Chinese government has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers, in retaliation against new restrictions on technology sales to Beijing announced by US allies in Asia and Europe.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement released 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.
The probe comes as Washington and its allies have announced curbs on China's semiconductor industry, striking at the heart of Beijing's bid to become a tech superpower. Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. In October, the United States banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Shares in Micron sank 4.4% on Wall Street Friday following the news, the biggest drop in more than three months. The company derives more than 10% of its revenue from China and has warned earlier this year about potential risks associated with restrictions on sales to the country.
Micron told CNN it was aware of the review, saying "We are in communication with the CAC and are cooperating fully." However, the company added that it stands by the security of its products, stating that Micron's product shipments, engineering, manufacturing, sales and other functions are operating as normal.
China has strongly criticized restrictions on tech exports, saying last month it "firmly opposes" such measures. Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges, but the country has also exerted growing pressure on foreign companies to bring them into line with its agenda.
The probe into Micron comes amid escalating tensions between China and US allies over technology exports. Last month, authorities closed the Beijing office of a US corporate intelligence firm and detained five local staff. Days earlier, they suspended Deloitte's operations in Beijing for three months and imposed a fine of $31 million over alleged lapses in its work auditing a state-owned distressed debt manager.
The restrictions on China's semiconductor industry are part of a broader effort by Washington to curb the country's growing influence in the global tech sector. The move is seen as an attempt to counter China's ambitions, but it has also been criticized for potentially disrupting global supply chains and causing economic uncertainty.
The Chinese government has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers, in retaliation against new restrictions on technology sales to Beijing announced by US allies in Asia and Europe.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement released 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.
The probe comes as Washington and its allies have announced curbs on China's semiconductor industry, striking at the heart of Beijing's bid to become a tech superpower. Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. In October, the United States banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Shares in Micron sank 4.4% on Wall Street Friday following the news, the biggest drop in more than three months. The company derives more than 10% of its revenue from China and has warned earlier this year about potential risks associated with restrictions on sales to the country.
Micron told CNN it was aware of the review, saying "We are in communication with the CAC and are cooperating fully." However, the company added that it stands by the security of its products, stating that Micron's product shipments, engineering, manufacturing, sales and other functions are operating as normal.
China has strongly criticized restrictions on tech exports, saying last month it "firmly opposes" such measures. Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges, but the country has also exerted growing pressure on foreign companies to bring them into line with its agenda.
The probe into Micron comes amid escalating tensions between China and US allies over technology exports. Last month, authorities closed the Beijing office of a US corporate intelligence firm and detained five local staff. Days earlier, they suspended Deloitte's operations in Beijing for three months and imposed a fine of $31 million over alleged lapses in its work auditing a state-owned distressed debt manager.
The restrictions on China's semiconductor industry are part of a broader effort by Washington to curb the country's growing influence in the global tech sector. The move is seen as an attempt to counter China's ambitions, but it has also been criticized for potentially disrupting global supply chains and causing economic uncertainty.
It seems like a super tricky situation for all parties involved. On one hand, Micron does have to take steps to protect their products from potential risks in China. But on the other hand, if they don't comply with the Chinese government's probe, it could lead to some serious consequences for the company and its customers 
, I think this whole situation is a great reminder that even in the digital age, we need to stay grounded & focused on what really matters - like taking care of our own mental health and well-being 
. Meanwhile, Micron's losing millions on Wall Street and their Chinese customers are getting worried about product quality... this whole thing is just a big mess 
. n meanwhile, micron's stock dropped like 4.4% lol what does that say about the situation? is america rly tryin 2 be all altruistic here or is there somethin more sinister lurkin in the shadows 
. it's like, i get china wanting to protect its own interests but can't they see how this is gonna hurt everyone else 
? us allies are already getting a little salty about this too, like holland just announced new restrictions on overseas sales of semiconductors 
. it's all very dramatic & unnecessary 
. micron's all like "we're cooperating fully" but can't we just have a chill conversation about this instead of launching probes 
It feels like we're caught up in this escalating game of tech tit-for-tat. On one hand, it's understandable that countries want to protect their own interests and security. But when you consider the ripple effect on global supply chains, it's not just about national security anymore – it's about economics, innovation, and jobs 
What do you think? Can we find a way to balance our national interests with global responsibilities? 
i hope they can navigate this whole china thing without too much drama 
maybe we'll see some positive news soon? 
like they cant even make their own chips or something 
its not like us just woke up one day and decided to cut them off, we've been playing hardball for years and now they're mad 
the usa is literally trying to level the playing field and stop china from becoming a major player in tech but instead of being all cool about it, china is acting all dramatic 
. I mean, the US has been pretty vocal about wanting to limit China's tech growth, but this seems like a pretty direct attack on one of their key players 
. I'm curious to see how this whole thing plays out, will China back down or keep pushing for more tech exports 
. It's all about playing the blame game at this point. The US government needs to step up and provide some clarity on these restrictions, like, yesterday 
But for real, I think this whole tech cold war is gonna have some major consequences. What if these restrictions do disrupt global supply chains? I mean, we've seen it happen before with trade wars and stuff. China's got the world by the throat right now when it comes to tech, and this just makes things worse... 
... but is it worth risking an international trade war? 
. They can't just let the US walk all over them, especially when it comes to tech 
. This whole thing is about the US trying to strangle China's economy 
. They'll just find ways to adapt and come out on top 
.
. There'll be more moves like this, and they'll get bigger 
.
. This is gonna be a wild ride! 
. The fact that Beijing's retaliating with a probe into Micron's products says a lot about how far they're willing to go to defend their interests 
.
micron's in trouble now, i feel for them... hope they can navigate through this 
it's like a big game of tech chess 
has anyone else been following this story?