Micron Technology, a leading US memory chip manufacturer, has been under fire from Chinese authorities after several of its allies in Asia and Europe imposed restrictions on sales of key technology to Beijing.
In a move that appears to be retaliation, China's Cyberspace Administration has launched a cybersecurity probe into Micron, reviewing products sold by the company within the country. This investigation aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security," according to the watchdog.
This development comes as tensions between China and the US have escalated over trade and technology issues. The move is part of a broader effort by Washington and its allies to curb China's growing influence in the global tech industry.
Last month, Japan, another key US ally, announced it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar measures by the US and the Netherlands. These restrictions are aimed at preventing China from gaining an unfair advantage in the semiconductor market.
The probe into Micron has sent shockwaves through the industry, with shares of the company plummeting 4.4% on Wall Street. The Idaho-based firm derives over 10% of its revenue from China, making it a key target for Chinese regulators.
In a statement, Micron said it was aware of the review and would cooperate fully with the investigation. However, the company also expressed concerns about potential restrictions on its operations in China, saying that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies."
China has strongly criticized such measures, calling them "unfair" and "unjust." The country is seeking to woo foreign investments as it grapples with mounting economic challenges. However, Beijing's efforts to exert control over foreign companies have also been met with resistance.
The probe into Micron is the latest in a series of moves by Chinese authorities to regulate foreign companies operating within its borders. Last month, authorities closed the Beijing office of US corporate intelligence firm Mintz Group and detained 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 China and the US continue to escalate, it remains to be seen how this probe into Micron will play out. However, one thing is clear: the semiconductor industry is becoming increasingly entangled in the complex web of geopolitics and trade relationships between major economies.
In a move that appears to be retaliation, China's Cyberspace Administration has launched a cybersecurity probe into Micron, reviewing products sold by the company within the country. This investigation aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security," according to the watchdog.
This development comes as tensions between China and the US have escalated over trade and technology issues. The move is part of a broader effort by Washington and its allies to curb China's growing influence in the global tech industry.
Last month, Japan, another key US ally, announced it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar measures by the US and the Netherlands. These restrictions are aimed at preventing China from gaining an unfair advantage in the semiconductor market.
The probe into Micron has sent shockwaves through the industry, with shares of the company plummeting 4.4% on Wall Street. The Idaho-based firm derives over 10% of its revenue from China, making it a key target for Chinese regulators.
In a statement, Micron said it was aware of the review and would cooperate fully with the investigation. However, the company also expressed concerns about potential restrictions on its operations in China, saying that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies."
China has strongly criticized such measures, calling them "unfair" and "unjust." The country is seeking to woo foreign investments as it grapples with mounting economic challenges. However, Beijing's efforts to exert control over foreign companies have also been met with resistance.
The probe into Micron is the latest in a series of moves by Chinese authorities to regulate foreign companies operating within its borders. Last month, authorities closed the Beijing office of US corporate intelligence firm Mintz Group and detained 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 China and the US continue to escalate, it remains to be seen how this probe into Micron will play out. However, one thing is clear: the semiconductor industry is becoming increasingly entangled in the complex web of geopolitics and trade relationships between major economies.
china's move on micron tech is a big deal, especially since they're already feeling the heat from their own economic challenges 
and it's not just about micron, this is also about other companies like japan & europe 
what's really going on here is that china's trying to protect its own interests in the global chip market 
but the thing is, they can't seem to do it without stepping on others' toes 
. China's just trying to protect its own interests, but I get why Micron's getting salty about it. The thing is, what if these restrictions end up hurting more than they help? 
.
[A GIF of a Chinese dragon breathing fire, but the fire is actually just Micron's profits burning] 
i mean china's just trying to protect its own interests but at what cost? the us is basically saying no more china, and it's affecting everyone else in the process 
i feel like we're seeing the consequences of trade wars and geopolitics spilling into everyday business life 
china needs to find a way to balance its ambitions with cooperation and respect for global norms 
. I'm starting to think about diversifying my investments, anyone else doing the same? 
.
.
china launching a cyber security probe on them after their asia and europe allies did the same to china 
it's all so confusing and I'm low-key worried about the impact on global chip production 
also can't wait to see how this plays out in the world of tech 
Where does it end?