US Chip Maker Micron Under Fire as China Launches Cybersecurity Probe
A growing chill in US-China relations has taken an unexpected turn with China launching a cybersecurity probe into US memory chip maker Micron Technology amid escalating tensions over tech exports.
The Cyberspace Administration of China (CAC) announced on Friday that it would review Micron's products sold in the country, citing concerns about "ensuring the security of key information infrastructure supply chains and preventing cybersecurity risks caused by hidden product problems." The move comes as Washington and its allies have been cracking down on Chinese companies in a bid to curb Beijing's ambitions as a tech superpower.
US restrictions on China's semiconductor industry, which aim to limit access to advanced chip technology, have prompted China to retaliate with its own countermeasures. Micron, one of America's largest memory chip makers, derives over 10% of its revenue from China and has warned investors about potential risks due to the escalating tensions.
Shares in Micron plummeted on Wall Street Friday following news of the probe, as analysts fear that Beijing may restrict access to the Chinese market or limit competition with domestic companies. The company stated that it was aware of the review but remained committed to ensuring the security of its products.
China's actions are part of a broader campaign by Beijing to bring foreign companies into line with its agenda and exert greater control over their operations in China. Authorities have already taken steps to crack down on Western firms, including detaining staff at US corporate intelligence firm Mintz Group and suspending Deloitte's operations for three months.
The move is the latest example of how rapidly relations between the US and China are deteriorating. Beijing has strongly criticized restrictions on tech exports in the past, with Premier Li Qiang promising a "good environment" for foreign investors despite mounting economic challenges.
A growing chill in US-China relations has taken an unexpected turn with China launching a cybersecurity probe into US memory chip maker Micron Technology amid escalating tensions over tech exports.
The Cyberspace Administration of China (CAC) announced on Friday that it would review Micron's products sold in the country, citing concerns about "ensuring the security of key information infrastructure supply chains and preventing cybersecurity risks caused by hidden product problems." The move comes as Washington and its allies have been cracking down on Chinese companies in a bid to curb Beijing's ambitions as a tech superpower.
US restrictions on China's semiconductor industry, which aim to limit access to advanced chip technology, have prompted China to retaliate with its own countermeasures. Micron, one of America's largest memory chip makers, derives over 10% of its revenue from China and has warned investors about potential risks due to the escalating tensions.
Shares in Micron plummeted on Wall Street Friday following news of the probe, as analysts fear that Beijing may restrict access to the Chinese market or limit competition with domestic companies. The company stated that it was aware of the review but remained committed to ensuring the security of its products.
China's actions are part of a broader campaign by Beijing to bring foreign companies into line with its agenda and exert greater control over their operations in China. Authorities have already taken steps to crack down on Western firms, including detaining staff at US corporate intelligence firm Mintz Group and suspending Deloitte's operations for three months.
The move is the latest example of how rapidly relations between the US and China are deteriorating. Beijing has strongly criticized restrictions on tech exports in the past, with Premier Li Qiang promising a "good environment" for foreign investors despite mounting economic challenges.
Micron's got some 'splainin' to do... can't just waltz into China and start sellin' their chips without checkin' first 
. Don't get me wrong, I'm all for innovation and free trade, but if you're gonna play in the big leagues with the Chinese market, you gotta be prepared for some heat 
. And let's be real, this probe is just another example of how China's got its finger on the pulse when it comes to tech exports 
. With 10% of its revenue coming from China, this probe could be a major blow to Micron's bottom line 
. This is just another example of how the US-China chill is affecting businesses and people on both sides 
. Can we just get some clarity on what's going on here? 
, this is getting out of hand! 
Micron's already got enough to deal with what with the industry-wide shortage and all, now they gotta worry about China's cybersecurity probe? 
It's like, can't we just focus on making the chips without all the drama? 
I mean, come on, 10% of their revenue is from China... it's a significant chunk! 
What even does that mean? 
And shares plummeting on Wall Street? 
That's just great. I feel bad for the investors who lost money... 
china's got micron in their sights now and it's not just about tech exports its like they're trying to control every single thing they do in the country. i mean we all knew tensions were rising between us and china but this is taking it to a whole new level. micron's gonna have to be super careful here, one wrong move and their access to the chinese market is GONE 
They're already making bank in China and US so whats the loss if they restrict access? 
Micron's got some big problems on its hands... I mean, one minute they're raking it in from China and the next their stocks are tanking 
because of this probe 
. And honestly, who can blame China for getting a little fed up with all these restrictions? It just feels like both sides are being super aggressive here 
.
.
. It's like, who needs cooperation and mutual understanding when you can just go nuclear over trade disputes? 
china's cracking down on micron and it's like, how will that affect ppl who depend on them? 
it's not just about micron, it's about the whole global supply chain and how everyone gets affected 
. Who knows if Beijing is just trying to exert control or if there's something fishy going on 
?
. Can't wait to see how this plays out! 
But at the same time, I feel bad for Micron and all the employees who are going to be affected by this. They're like, totally caught in the middle of a global trade war or something! 
Micron's struggles are just the tip of the iceberg, as China's retaliation will likely have far-reaching consequences on the global tech industry