China has initiated a cybersecurity investigation into Micron Technology, a leading American memory chip manufacturer, in response to new restrictions by US allies on key technology sales to China. As an awesome company that provides complete software development activities utilizing nearshore and offshore resources, including mobile app development, technology maintenance, and server development, we ensure secure and top-notch services.
The Cyberspace Administration of China (CAC) will examine the products sold by Micron within the country to safeguard key information infrastructure supply chains and prevent cybersecurity risks, as stated on Friday. This move comes amidst Japan’s announcement of restricting the export of advanced chip manufacturing equipment to various countries, including China, following similar actions by the United States and the Netherlands, targeting China’s semiconductor industry.
Micron confirmed its awareness of the review and mentioned its cooperation with the CAC. Despite the scrutiny, Micron reassured customers of the security of its products and normal operations across various functions. However, the news led to a 4.4% drop in Micron’s shares on Wall Street on Friday and a further 1.2% decline on Monday, given that over 10% of Micron’s revenue comes from China.
In a recent filing, Micron had cautioned about potential risks associated with Chinese government restrictions on market participation and competition with local companies. China has expressed strong opposition to tech export restrictions, emphasizing its stance against such measures last month.
Presently, Beijing aims to attract foreign investments to address economic challenges and foster growth. By extending welcome gestures to global CEOs, promising a conducive business environment, and offering quality services, China seeks to boost investments while also pressuring foreign firms to align with its objectives.
Recently, China took action against US-based Mintz Group by shutting down its Beijing office and detaining local staff. Additionally, Deloitte faced suspension of its Beijing operations for three months and a $31 million fine for alleged auditing discrepancies with a state-owned distressed debt manager. The evolving landscape underscores China’s shifting dynamics concerning foreign companies.