China Bans Micron In Tit-for-tat Move

  • Post category:Technology
  • Reading time:4 mins read
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Major Chinese companies are not allowed to purchase from Micron Technology in China. China claimed that Micron’s products pose a significant threat to national security.

The Cyberspace Administration of China stated on Sunday that after reviewing Micron products, it found significant security risks that could compromise national security. The agency advised key Chinese information infrastructure operators, including state-owned banks and telecommunications companies, to steer clear of buying the company’s products.

The Chinese ban was implemented less than two months after Beijing announced an investigation into imports from Micron, the largest memory chip manufacturer in the US, in what appeared to be a political retaliation to a broad embargo Washington imposed late last year on the export of advanced chip-making technology to China.

Chinese government representatives think that the Biden administration was pressured to enact the ban by a few American corporations. Beijing may have targeted Micron specifically, according to the Micron probe. In an effort to protect its economy from outside influence, China has also recently increased pressure on foreign companies generally.

Although the Micron ban only affects large Chinese companies, its effects may be more widespread.

The Cyberspace Watchdog, which is accountable to a leadership group led by President Xi Jinping, has conducted its first investigation into a foreign company, Micron, in this review. Comparatively, market regulators in China have typically been the ones to take enforcement actions against foreign businesses in the past when those companies have engaged in competitive or pricing issues.

The move against Micron also follows Beijing’s condemnation of a statement made by President Biden and the leaders of six other democracies in which they vowed to take action to stop the transfer of sensitive technology to China and defend countries from what they perceive to be Beijing’s intimidation tactics. The Group of Seven is promoting Western laws with questionable international legitimacy, according to China’s Foreign Ministry.

As the G-7 summit in Japan came to a close on Sunday, Biden stated that the US intends to increase channels of communication with China as relations continue to worsen.

China has been looking for ways to respond to US sanctions against Chinese companies. In light of the escalating US-China technology competition, it has delayed giving the go-ahead for mergers involving US businesses like Intel.

According to analysts and Western business executives who have consulted with Chinese authorities, Micron represents an easy target for Beijing because Chinese businesses can quickly switch out its products for ones made by rivals like Samsung and SK Hynix.

According to research firm Gavekal Dragonomics, Micron receives 10% of its revenue from China.

In a statement released on Sunday, China’s cybersecurity watchdog stated that the country welcomes goods and services offered by businesses in all nations so long as they abide by Chinese laws and regulations.

Micron stock just achieved a bullish horizontal breakout from resistance that looks to be tested next week.

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