Micron Technology, a major US-based memory chip maker, is facing a probe by Chinese authorities over potential cybersecurity risks, in what appears to be retaliation against recent restrictions on technology sales to China by its allies.
The Cyberspace Administration of China has launched an investigation into Micron's products sold in the country, citing the need to ensure national security and prevent "hidden product problems" that could compromise key information infrastructure supply chains. The move comes as tensions between the US and China over tech exports continue to escalate.
Last month, Japan announced plans to restrict the export of advanced chip manufacturing equipment to countries including China, while the United States and the Netherlands have also imposed curbs on China's semiconductor industry. These moves are part of a broader effort by the US to limit China's access to critical technology and slow its emergence as a global tech powerhouse.
Micron has warned in an earlier filing that it faces risks from Chinese regulations, including potential restrictions on participation in the China market or prevention of effective competition with local companies. The company has stated that it is cooperating fully with the investigation and stands by the security of its products.
Shares in Micron plummeted 4.4% on Wall Street following news of the probe, their biggest drop in over three months. The company derives more than 10% of its revenue from China, making the move a significant concern for investors.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing is seeking to woo foreign investments and has been exerting pressure on companies to bring them into line with its agenda. In recent weeks, authorities have closed the offices of several foreign firms in China, detaining staff and imposing fines.
As tensions over tech exports continue to escalate, Micron's probe by Chinese authorities raises questions about the future of US-China relations and the potential impact on global supply chains.
The Cyberspace Administration of China has launched an investigation into Micron's products sold in the country, citing the need to ensure national security and prevent "hidden product problems" that could compromise key information infrastructure supply chains. The move comes as tensions between the US and China over tech exports continue to escalate.
Last month, Japan announced plans to restrict the export of advanced chip manufacturing equipment to countries including China, while the United States and the Netherlands have also imposed curbs on China's semiconductor industry. These moves are part of a broader effort by the US to limit China's access to critical technology and slow its emergence as a global tech powerhouse.
Micron has warned in an earlier filing that it faces risks from Chinese regulations, including potential restrictions on participation in the China market or prevention of effective competition with local companies. The company has stated that it is cooperating fully with the investigation and stands by the security of its products.
Shares in Micron plummeted 4.4% on Wall Street following news of the probe, their biggest drop in over three months. The company derives more than 10% of its revenue from China, making the move a significant concern for investors.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing is seeking to woo foreign investments and has been exerting pressure on companies to bring them into line with its agenda. In recent weeks, authorities have closed the offices of several foreign firms in China, detaining staff and imposing fines.
As tensions over tech exports continue to escalate, Micron's probe by Chinese authorities raises questions about the future of US-China relations and the potential impact on global supply chains.
I mean, I get it, security concerns are valid, but let's not forget that trade wars can hurt a lot of people 
especially those in China who rely on Micron's products. Hope the investigation finds out what's going on and resolves it soon 
. As a parent, I just want my kids to have access to the best education and technology available, but if it's going to affect the global supply chain, that's concerning 
. I mean, what if Micron's products aren't safe for China? And what about all the other companies like Japan and the US? Are they going to start boycotting each other too? 
It's like, can we just focus on making cool stuff without making it a big deal over national security? 
and what about the other countries that are restricting tech exports to china? are they going to get in trouble too? 
meanwhile, japan's being all diplomatic with its export restrictions 
Netherlands too tho... 10% of revenue from china is a big chunk 
and shares are already getting hit 
. But on the other hand, it's not like Micron is hiding anything - they've got security measures in place and everything.
. You can't really predict what China will do next or how US-China relations are gonna play out in the long run. And now, with global supply chains at risk 
, it's like, who knows? Will we see more of these kinds of probes and restrictions on foreign firms? It's just getting harder to keep up 
.
, you gotta be aware of the risks. And it's not just Micron - there are other companies that are gonna get hit with these kinds of probes too 
.
, but what if it backfires? I mean, China's been trying to get all its companies together under one roof and now Micron's getting hit 
. I think this probe is more about China trying to assert its influence over foreign firms rather than genuinely concerned about national security 
.
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. we'll just have to wait and see how it all plays out 
. it's all about balance, right? china can't just dictate how companies operate in their country and then get mad when others do the same thing 
and then there's micron losing 4.4% of its shares on wall street... that's a big drop 
... micron's got some serious worries now, 10% of its revenue is coming from china - that's like a big chunk 
. I'm rooting for Micron to get through this without too much damage 
.
It's like China is saying "Hey, we want to control the whole world's tech supply!" 
And now investors are freaking out because of it? 
And on the bright side, I guess this might be a wake-up call for companies to rethink their strategies in China 
They're going to need to tread carefully to avoid any potential fallout 
it'll be interesting to see how this all plays out... and what kind of impact it has on the tech industry as a whole.