China Launches Cybersecurity Probe into US Chip Maker Micron as Tech Tensions Escalate
In a move that is perceived as retaliation against the United States' growing restrictions on China's semiconductor industry, Beijing has launched a cybersecurity probe into US-based chip maker Micron Technology. The Cyberspace Administration of China (CAC) announced late Friday that it will review products sold by Micron in the country to ensure "the security of key information infrastructure supply chains" and prevent "cybersecurity risks caused by hidden product problems."
The probe comes on the heels of new restrictions imposed by US allies Japan, the Netherlands, and the United States themselves on the sale of advanced chip manufacturing equipment to countries including China. These curbs strike at the heart of Beijing's bid to become a tech superpower.
Micron Technology, one of America's largest memory chip makers, derives more than 10% of its revenue from China. The company confirmed that it is aware of the review and said it is cooperating fully with the CAC. "We are in communication with the CAC and are cooperating fully," Micron stated. "Micron's product shipments, engineering, manufacturing, sales, and other functions are operating as normal."
Shares in Micron plummeted 4.4% on Wall Street on Friday following the news, marking the biggest drop in more than three months. The company had earlier warned of such risks in an earlier filing.
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 and has been rolling out the welcome wagon for global CEOs promising a "good environment and services."
However, Beijing has also exerted growing pressure on foreign companies to bring them into line with its agenda. Last month, authorities closed the Beijing office of US corporate intelligence firm Mintz Group, detaining 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.
As tensions between Washington and Beijing continue to escalate, the cybersecurity probe into Micron Technology has highlighted the growing risks faced by US-based companies operating in China. The implications are far-reaching, with potential consequences for global supply chains and US-China trade relations hanging in the balance.
In a move that is perceived as retaliation against the United States' growing restrictions on China's semiconductor industry, Beijing has launched a cybersecurity probe into US-based chip maker Micron Technology. The Cyberspace Administration of China (CAC) announced late Friday that it will review products sold by Micron in the country to ensure "the security of key information infrastructure supply chains" and prevent "cybersecurity risks caused by hidden product problems."
The probe comes on the heels of new restrictions imposed by US allies Japan, the Netherlands, and the United States themselves on the sale of advanced chip manufacturing equipment to countries including China. These curbs strike at the heart of Beijing's bid to become a tech superpower.
Micron Technology, one of America's largest memory chip makers, derives more than 10% of its revenue from China. The company confirmed that it is aware of the review and said it is cooperating fully with the CAC. "We are in communication with the CAC and are cooperating fully," Micron stated. "Micron's product shipments, engineering, manufacturing, sales, and other functions are operating as normal."
Shares in Micron plummeted 4.4% on Wall Street on Friday following the news, marking the biggest drop in more than three months. The company had earlier warned of such risks in an earlier filing.
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 and has been rolling out the welcome wagon for global CEOs promising a "good environment and services."
However, Beijing has also exerted growing pressure on foreign companies to bring them into line with its agenda. Last month, authorities closed the Beijing office of US corporate intelligence firm Mintz Group, detaining 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.
As tensions between Washington and Beijing continue to escalate, the cybersecurity probe into Micron Technology has highlighted the growing risks faced by US-based companies operating in China. The implications are far-reaching, with potential consequences for global supply chains and US-China trade relations hanging in the balance.
. Retaliation or not, Micron shoulda seen this comin'... now they're payin' the price 
china is really pulling out all the stops to get back at us over these chip restrictions... a cyber probe into micron tech as a retaliatory move? that's just crazy 
i'm not surprised shares plummeted 4.4% tho lol what did they expect? and btw this isn't the first time china has cracked down on foreign companies... like, remember mintz group getting detained in january? 
so yeah, micron's got some 'splainin' to do 
Micron's got a huge chunk of its revenue coming from China, so if they mess with their operations, it could impact all sorts of people - not just the US, but also everyone who depends on global supply chains for their stuff.
it's like they're pushing back against the US trying to limit that growth. And what if Micron gets shut down or something? That could cause a huge ripple effect throughout the whole industry.
The US is literally shooting itself in the foot by restricting China's access to advanced chip manufacturing equipment 
. It's like trying to build a spaceship without a map 
. Micron's 10% revenue from China isn't much, but it's still a chunk of change 
. It's a big risk for the global economy and US-China trade relations 
So I'm thinking about this... 
Micron gets hit with a probe from China because of those new restrictions on chip exports to China 
. 
. But on the other hand, it's also super concerning for global supply chains and trade relations 
.
. And now they're getting hit with a cybersecurity probe? It's like, what's next? 
. It's about how we regulate global trade and investment 
. Do we want to create more barriers between countries or find ways to collaborate and grow together 
?
but seriously this is getting outta hand china is like super sensitive about tech exports rn and now they're retaliating on a huge scale 
This whole situation is super worrying 
.
. One thing's for sure, though: this is one giant step towards a whole lot of trouble 
. US allies are all like "nay" to chinese tech investments too 
!