China recently initiated a cybersecurity inquiry into Micron Technology, a significant memory chip manufacturer from the United States. This action seems to be in response to new restrictions on the trade of critical technology to Beijing by US allies in Asia and Europe. The Cyberspace Administration of China (CAC) announced that it will evaluate Micron’s products sold in the country to secure key information infrastructure supply chains and prevent cybersecurity threats arising from hidden product issues to safeguard national security.
This move coincided with Japan’s decision to limit the export of advanced chip manufacturing equipment to various countries, including China, joining similar actions taken by the United States and the Netherlands. These restrictions are aimed at China’s semiconductor industry, a vital sector for Beijing’s ambitions to dominate the tech industry worldwide.
Micron Technology acknowledged being aware of the review and assured full cooperation with the CAC while remaining confident in the security of their products. The company confirmed that its operations are proceeding as usual across functions like product shipments, engineering, manufacturing, and sales. However, Micron’s shares experienced a notable 4.4% decline on Wall Street following the news, marking the most substantial drop in over three months, and closed 1.2% lower on Monday. With over 10% of its revenue coming from China, Micron had previously alerted about potential risks associated with the Chinese market in a recent filing.
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China has vocally opposed limitations on technology exports, emphasizing its firm opposition to these measures. While Beijing aims to attract foreign investments to stimulate growth and employment, it also exerts significant pressure on foreign enterprises to align with its objectives. Recent actions against companies like closing the Beijing office of Mintz Group and suspending Deloitte’s operations demonstrate such pressures.
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