China launches cyber probe into US chip maker Micron as tech tensions escalate.
The Chinese government has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers, in retaliation for new restrictions on the sale of key technology to Beijing imposed by US allies in Asia and Europe. The Cyberspace Administration of China (CAC) will review products sold by Micron in the country.
The move is aimed at ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security. This follows similar actions taken by Japan, a US ally, which has restricted the export of advanced chip manufacturing equipment to countries including China.
Washington and its allies have announced curbs on China's semiconductor industry, striking at the heart of Beijing's bid to become a tech superpower. Last month, 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 chip-making equipment without a license.
Shares in Micron have dropped 4.4% on Wall Street following the news, the biggest drop in more than three months. The Idaho-based company derives over 10% of its revenue from China and had warned earlier this year of such risks. In an earlier filing, Micron stated that the Chinese government may restrict it from participating in the China market or prevent it from competing effectively with Chinese companies.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges, with newly minted premier Li Qiang and several top economic officials 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.
The escalating tech tensions between China and the US are likely to have significant implications for global trade and investment.
The Chinese government has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers, in retaliation for new restrictions on the sale of key technology to Beijing imposed by US allies in Asia and Europe. The Cyberspace Administration of China (CAC) will review products sold by Micron in the country.
The move is aimed at ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security. This follows similar actions taken by Japan, a US ally, which has restricted the export of advanced chip manufacturing equipment to countries including China.
Washington and its allies have announced curbs on China's semiconductor industry, striking at the heart of Beijing's bid to become a tech superpower. Last month, 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 chip-making equipment without a license.
Shares in Micron have dropped 4.4% on Wall Street following the news, the biggest drop in more than three months. The Idaho-based company derives over 10% of its revenue from China and had warned earlier this year of such risks. In an earlier filing, Micron stated that the Chinese government may restrict it from participating in the China market or prevent it from competing effectively with Chinese companies.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges, with newly minted premier Li Qiang and several top economic officials 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.
The escalating tech tensions between China and the US are likely to have significant implications for global trade and investment.
i mean china is tryna protect its own interests but american gov really messin up their economy by restrictin exports lol microns shares dropped alot cuz of this news now im worried bout michons future in china 
I mean, I knew tensions were high, but this is like, next level. The US just imposed these new restrictions on tech exports to China, and now China is firing back? 
It's like they're playing a game of digital chess, and we're all just sitting here watching it unfold 
. And the thing is, both sides are kinda stuck in this cycle of "we're gonna restrict tech exports to China" vs "China is retaliating with its own cyber probe"... it's like they're not even talking about finding a solution 
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The numbers don't lie - 70% of Micron's revenue comes from China, and now they're facing a 4.4% drop in shares 
They're like, super eye-opening! 80% of Chinese tech imports are subject to restrictions now, which is gonna affect not just Micron, but all sorts of other companies 
this whole thing is getting outta hand 
they need to grow their own economy & not rely on foreign tech 
but at the same time, micron's been super clear that they're worried about chinese regulations 
let's find a middle ground here 
like, instead of launching a cyber probe, china could just sit down with micron & work out their differences 
or maybe set up some sorta trade agreement 
but nope, it's always "us vs. them" 
what's the point of that? 
but at the same time, i get why the US is trying to protect its own interests and national security 
plus japan's not exactly innocent either they're just trying to get in on the action too...anyway i think china's got some legit concerns about national security and tech sovereignty 
. It's getting outta hand.
. I mean, we all know the Chinese economy is struggling, so instead of addressing that, they're taking it out on foreign companies and governments. It's just a bunch of CYA (you know what I'm talking about 
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. The US is just trying to protect its own interests, but China's reaction says a lot about their true intentions. This is what happens when you try to contain the tech beast 
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where both sides are trying to outmaneuver each other. i feel bad for micron tho, 4.4% drop in shares is huge 
. It's also worth noting that the Netherlands' announcement of new restrictions on overseas sales of semiconductor technology is another example of how this "tech cold war" is spreading 
. Like, if one side puts a roadblock on exports, the other side is gonna hit them right back 
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. Can't we just try to find common ground and stuff?