US chipmaker Micron Technology is under scrutiny from Chinese authorities over cybersecurity concerns, following a series of restrictions on tech exports imposed by Washington and its allies.
The Cyberspace Administration of China has launched an investigation into Micron's products sold in the country, citing a need to ensure the security of key information infrastructure supply chains. This move comes as Beijing seeks to boost growth and job creation through foreign investments, but also wields growing pressure on companies to bring them into line with its agenda.
The probe is part of China's efforts to counterbalance US-led restrictions on tech exports, which aim to curb Beijing's ambitions to become a global technology leader. In recent months, the US has banned Chinese companies from buying advanced chips and chip-making equipment without a license, while Japan and the Netherlands have also announced curbs on exports to countries including China.
Shares in Micron dropped 4.4% on Wall Street following news of the probe, the biggest decline in more than three months, as the company derives over 10% of its revenue from China. In an earlier filing, Micron warned of such risks and cautioned that the Chinese government may restrict it from participating in the China market or prevent it from competing effectively with Chinese companies.
The move is seen as a response to Beijing's criticism of restrictions on tech exports, which was described last month as "firmly opposed." However, China has also been exerting pressure on foreign companies, including closing offices and detaining staff of international firms.
Micron said it was aware of the review and would cooperate fully with Chinese authorities. The company maintains that its products are secure and stands by their security. Despite this, investors remain cautious, as the probe could potentially disrupt Micron's operations in China and impact its sales.
The Cyberspace Administration of China has launched an investigation into Micron's products sold in the country, citing a need to ensure the security of key information infrastructure supply chains. This move comes as Beijing seeks to boost growth and job creation through foreign investments, but also wields growing pressure on companies to bring them into line with its agenda.
The probe is part of China's efforts to counterbalance US-led restrictions on tech exports, which aim to curb Beijing's ambitions to become a global technology leader. In recent months, the US has banned Chinese companies from buying advanced chips and chip-making equipment without a license, while Japan and the Netherlands have also announced curbs on exports to countries including China.
Shares in Micron dropped 4.4% on Wall Street following news of the probe, the biggest decline in more than three months, as the company derives over 10% of its revenue from China. In an earlier filing, Micron warned of such risks and cautioned that the Chinese government may restrict it from participating in the China market or prevent it from competing effectively with Chinese companies.
The move is seen as a response to Beijing's criticism of restrictions on tech exports, which was described last month as "firmly opposed." However, China has also been exerting pressure on foreign companies, including closing offices and detaining staff of international firms.
Micron said it was aware of the review and would cooperate fully with Chinese authorities. The company maintains that its products are secure and stands by their security. Despite this, investors remain cautious, as the probe could potentially disrupt Micron's operations in China and impact its sales.
! micron's situation is kinda crazy - they know china's gonna scrutinize them anyway, but still gotta deal w/ the consequences 
. i mean, china wants to boost their economy & grow as a tech leader, so it's only natural they'd wanna regulate these foreign companies operating in their market 
. but at the same time, micron's got legit concerns about being restricted from participating in china - that'd be a huge blow 2 their business 
. i guess we'll just have to wait & see how this all plays out 
. one thing's for sure though: it's not good 4 anyone involved when these trade wars heat up 
and now shares are dropping like 4.4%? that's crazy 
china's trying to counterbalance us restrictions on tech exports but at the end of the day micron's got to worry about chinese gov not letting them compete w/ local companies 
i feel bad for em tho, they're just trying to do their thing 
gotta hope it gets sorted out soon 
And with Micron being a big player in the chip game, it's no wonder they're under scrutiny.
It sounds like a win-win situation for Beijing... or so it seems.
The fact that they're warning about the risks and cautioning against competition with Chinese companies? It all sounds like a major headache for them.
And it's not just Micron - other companies are also feeling the heat. But at the end of the day, it's all about finding that delicate balance between business and geopolitics... 
Micron's got its back against the wall now. Chinese authorities are comin' for 'em hard over cybersecurity concerns, but it's not like they're innocent or anythin'. They knew the risks when they started sellin' their products in China. And now, the US is cuttin' off the life support by restrictin' exports... it's a chicken and egg situation! 
.
. It's just the nature of how the global economy works - countries are always competing with each other and trying to gain an edge 
. It's like a big game of techopoly, where everyone's just trying to protect themselves 
. But hey, at least they're being transparent and all... *skeptical*
