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China launches probe into US chip maker Micron Technology amid escalating tech tensions
In a move that has sent shockwaves through the global semiconductor industry, China's Cyberspace Administration has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers. The probe comes as Beijing seeks to crack down on foreign companies doing business in the country and impose its own strict rules on technology exports.
The investigation is aimed at ensuring the security of key information infrastructure supply chains and preventing cyber risks caused by hidden product problems, according to a statement issued by the watchdog late Friday. This move is seen as retaliation against US allies in Asia and Europe who have announced new restrictions on the sale of key technology to Beijing.
Last month, Japan followed suit, saying it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands. These restrictions mark a significant escalation in tensions between the US and China over their respective ambitions in the global semiconductor industry.
Washington has announced curbs on China's semiconductor industry, which strike at the heart of Beijing's bid to become a tech superpower. The US move is seen as an attempt to limit China's access to advanced technology that could be used to develop its military capabilities.
The Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. In October, the United States banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Shares in Micron Technology plummeted 4.4% on Wall Street following the news, their biggest drop in over three months. The company derives more than 10% of its revenue from China, making it vulnerable to any restrictions imposed by Beijing.
Micron said it was aware of the review and is cooperating fully with the Chinese authorities. However, the company's shares have continued to fall, reflecting investors' concerns about the impact of the probe on its business.
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. The country's new premier, Li Qiang, and top economic officials have 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 Mintz Group, a US corporate intelligence firm, 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 the US and China continue to escalate, the global semiconductor industry is bracing itself for further disruptions. With Micron Technology at the forefront of the probe, investors and analysts will be watching closely for any signs of how this move will impact the company's business and the wider industry.
In a move that has sent shockwaves through the global semiconductor industry, China's Cyberspace Administration has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers. The probe comes as Beijing seeks to crack down on foreign companies doing business in the country and impose its own strict rules on technology exports.
The investigation is aimed at ensuring the security of key information infrastructure supply chains and preventing cyber risks caused by hidden product problems, according to a statement issued by the watchdog late Friday. This move is seen as retaliation against US allies in Asia and Europe who have announced new restrictions on the sale of key technology to Beijing.
Last month, Japan followed suit, saying it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands. These restrictions mark a significant escalation in tensions between the US and China over their respective ambitions in the global semiconductor industry.
Washington has announced curbs on China's semiconductor industry, which strike at the heart of Beijing's bid to become a tech superpower. The US move is seen as an attempt to limit China's access to advanced technology that could be used to develop its military capabilities.
The Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. In October, the United States banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Shares in Micron Technology plummeted 4.4% on Wall Street following the news, their biggest drop in over three months. The company derives more than 10% of its revenue from China, making it vulnerable to any restrictions imposed by Beijing.
Micron said it was aware of the review and is cooperating fully with the Chinese authorities. However, the company's shares have continued to fall, reflecting investors' concerns about the impact of the probe on its business.
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. The country's new premier, Li Qiang, and top economic officials have 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 Mintz Group, a US corporate intelligence firm, 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 the US and China continue to escalate, the global semiconductor industry is bracing itself for further disruptions. With Micron Technology at the forefront of the probe, investors and analysts will be watching closely for any signs of how this move will impact the company's business and the wider industry.
. I MEAN, US ALIES LIKE JAPAN AND EUROPE ARE TRYING TO PROTECT THEIR OWN INTERESTS HERE, BUT CHINA IS ACTING LIKE THEY'RE THE ONES WHO ARE BEING SQUASHED 
. AND IT'S NOT JUST MICRON TECHNOLOGY, IT'S A WHOLE INDUSTRY THAT'S AT STAKE 
. I HOPE THESE PROBES DON'T LEAD TO ANY SERIOUS DISRUPTIONS IN THE MARKET 
china launching a probe into us chip maker micron tech is just another example of how the trade tensions between usa and china are escalating 
i mean, i get that china wants to protect its own interests but restricting us companies from doing business with chinese companies is not going to solve anything 
it's like, both countries are just trying to one-up each other and it's affecting the whole world 
I mean, Beijing's been playing catch-up in tech for years and now they're finally starting to make some progress. But with this probe, they're gonna have to navigate all these complex international trade rules... it's gonna be a tough road ahead 
just heard about china launching a probe into micron technology and i'm low-key worried that we're gonna see more companies getting hit with restrictions too... these escalating tech tensions are already causing major shakeups in the global market and it's only gonna get worse from here 
like they haven't been trying to steal intel from everyone else for years... Micron tech is basically asking for it by making so much money off of those china deals 
. And now china gets to "investigate" micron, aka just make up some stuff and blame the company for being chinese 
. I'm low-key scared for Micron's shares but high-key worried about the global semiconductor industry as a whole