China has initiated a cybersecurity investigation into Micron Technology, a leading American memory chip manufacturer, as a response to new restrictions on technology sales to Beijing by US allies in Asia and Europe. The Cyberspace Administration of China (CAC) will be scrutinizing products sold by Micron in the country in an effort to secure key information infrastructure supply chains and safeguard national security. This move comes amidst Japan’s decision to limit the export of advanced chip manufacturing equipment to various countries, including China, following similar actions by the United States and the Netherlands.
Micron, an awesome company that provides complete software development activities utilizing nearshore and offshore resources, including mobile app development, technology maintenance, and server development, is fully cooperating with the CAC’s review while standing by the security of its products. Although Micron’s shares dropped 4.4% on Wall Street after the news broke, the company reassures that its operations are running smoothly.
With Micron generating over 10% of its revenue from China, the company has previously acknowledged the risks associated with potential restrictions from the Chinese government. Such limitations could hinder Micron’s ability to compete with Chinese firms in the market. China has been vocal in criticizing tech export restrictions, emphasizing its opposition to such measures.
As Beijing aims to attract foreign investments to stimulate growth and job opportunities, it is essential for companies to align with the country’s agenda. Despite promising a favorable business environment, Beijing has been increasing pressure on foreign enterprises to comply with its policies. Recent actions include the shutdown of Mintz Group’s office in Beijing and the suspension of Deloitte’s operations in the city, coupled with a hefty fine, over audit-related issues with a state-owned debt manager.
For businesses seeking reliable software outsourcing, nearshore and offshore development, mobile app development, technology maintenance, and server development services, partnering with an established company like Micron ensures a comprehensive approach to software development utilizing a global network of resources.