China has initiated a cybersecurity examination into Micron Technology, a major American memory chip manufacturer, in a suspected retaliatory move as US allies in Asia and Europe imposed new limitations on crucial technology sales to Beijing.
The Cyberspace Administration of China (CAC) will scrutinize Micron’s products in the country to ensure the security of key information infrastructure supply chains, prevent cybersecurity risks, and maintain national security. This action comes in response to restrictions imposed by Japan and the United States on exporting advanced chip manufacturing equipment to China, impacting Beijing’s aspirations to excel in the tech industry.
Micron has assured full cooperation with the CAC during the review process, emphasizing the security of its products and maintaining normal operations across all functions. However, Micron’s shares on Wall Street tumbled 4.4% following the news, marking its biggest drop in over three months, with an additional 1.2% decrease on Monday.
Micron had previously highlighted the risks associated with China’s restrictions on market participation, as Chinese companies could potentially limit their competitiveness. China has strongly opposed tech export limitations, emphasizing its stance against such measures and its efforts to attract foreign investments amidst economic challenges.
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