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US chip maker Micron Technology is facing a probe by China's Cyberspace Administration over concerns about cybersecurity risks in its products sold in the country.
The move comes as tensions between the US and China continue to escalate, with Beijing criticizing new restrictions on tech exports imposed by Washington. In response, Japan has also announced plans to restrict the export of advanced chip manufacturing equipment to countries including China.
Micron's shares have fallen sharply on Wall Street following the news, dropping 4.4% on Friday, their largest drop in over three months. The company derives more than 10% of its revenue from China, and has warned earlier that it faces risks such as restrictions on participation in the Chinese market.
The probe is aimed at ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security, according to a statement by the Cyberspace Administration. However, China has strongly criticized similar measures imposed by the US, saying it "firmly opposes" them.
As Beijing seeks to woo foreign investments in an effort to boost growth and job creation, it is also exerting growing pressure on foreign companies to bring them into line with its agenda. This includes closing down corporate offices and imposing fines on firms that fail to comply.
The tensions between the US and China are part of a broader tech rivalry between the two superpowers, with Beijing seeking to become a major player in the global semiconductor industry. However, Washington's restrictions on Chinese companies have sparked concerns about the impact on the sector and the potential for retaliation.
Micron has said it is cooperating fully with the probe and stands by the security of its products. The company's shares are still under pressure, however, as investors await further developments in the dispute between Beijing and Washington.
The move comes as tensions between the US and China continue to escalate, with Beijing criticizing new restrictions on tech exports imposed by Washington. In response, Japan has also announced plans to restrict the export of advanced chip manufacturing equipment to countries including China.
Micron's shares have fallen sharply on Wall Street following the news, dropping 4.4% on Friday, their largest drop in over three months. The company derives more than 10% of its revenue from China, and has warned earlier that it faces risks such as restrictions on participation in the Chinese market.
The probe is aimed at ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security, according to a statement by the Cyberspace Administration. However, China has strongly criticized similar measures imposed by the US, saying it "firmly opposes" them.
As Beijing seeks to woo foreign investments in an effort to boost growth and job creation, it is also exerting growing pressure on foreign companies to bring them into line with its agenda. This includes closing down corporate offices and imposing fines on firms that fail to comply.
The tensions between the US and China are part of a broader tech rivalry between the two superpowers, with Beijing seeking to become a major player in the global semiconductor industry. However, Washington's restrictions on Chinese companies have sparked concerns about the impact on the sector and the potential for retaliation.
Micron has said it is cooperating fully with the probe and stands by the security of its products. The company's shares are still under pressure, however, as investors await further developments in the dispute between Beijing and Washington.