US Chip Maker Micron Under Cybersecurity Probe from China Amid Escalating Tech Tensions
The Chinese government has launched a cybersecurity probe into US chip maker Micron Technology in response to recent restrictions on tech exports imposed by Washington's allies in Asia and Europe. This move is part of growing tensions between the two superpowers, with Beijing seeking to counter US curbs on its semiconductor industry.
China's Cyberspace Administration (CAC) will review products sold by Micron in the country as part of an effort to ensure the security of key information infrastructure supply chains and prevent cybersecurity risks caused by hidden product problems. The probe is aimed at maintaining national security, according to a statement from the CAC.
The move comes on the heels of similar restrictions imposed by Japan, the US, and the Netherlands on China's semiconductor industry, which are aimed at curbing Beijing's bid to become a tech superpower. Micron derives more than 10% of its revenue from China, making it a key player in the country's growing tech sector.
Shares in Micron plummeted 4.4% on Wall Street following the news, with prices dropping further by 1.2% on Monday, their largest drop in over three months. The company has warned of such risks, stating that the Chinese government may restrict its participation in the China market or prevent it from competing effectively with local companies.
China has strongly criticized restrictions on tech exports, saying last month that it "firmly opposes" such measures. However, Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges, promising a "good environment and services" for global CEOs.
The probe into Micron marks another effort by China to exert pressure on foreign companies to bring them in line with its agenda. In recent months, authorities have closed the Beijing office of a US corporate intelligence firm and suspended operations of Deloitte's arm in the city.
As tensions between Washington and Beijing continue to escalate, it remains to be seen how this probe will impact Micron's business operations in China. The company has stated that it is cooperating fully with the CAC, but shares are still reeling from the news, underscoring the risks facing US companies operating in the country.
The Chinese government has launched a cybersecurity probe into US chip maker Micron Technology in response to recent restrictions on tech exports imposed by Washington's allies in Asia and Europe. This move is part of growing tensions between the two superpowers, with Beijing seeking to counter US curbs on its semiconductor industry.
China's Cyberspace Administration (CAC) will review products sold by Micron in the country as part of an effort to ensure the security of key information infrastructure supply chains and prevent cybersecurity risks caused by hidden product problems. The probe is aimed at maintaining national security, according to a statement from the CAC.
The move comes on the heels of similar restrictions imposed by Japan, the US, and the Netherlands on China's semiconductor industry, which are aimed at curbing Beijing's bid to become a tech superpower. Micron derives more than 10% of its revenue from China, making it a key player in the country's growing tech sector.
Shares in Micron plummeted 4.4% on Wall Street following the news, with prices dropping further by 1.2% on Monday, their largest drop in over three months. The company has warned of such risks, stating that the Chinese government may restrict its participation in the China market or prevent it from competing effectively with local companies.
China has strongly criticized restrictions on tech exports, saying last month that it "firmly opposes" such measures. However, Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges, promising a "good environment and services" for global CEOs.
The probe into Micron marks another effort by China to exert pressure on foreign companies to bring them in line with its agenda. In recent months, authorities have closed the Beijing office of a US corporate intelligence firm and suspended operations of Deloitte's arm in the city.
As tensions between Washington and Beijing continue to escalate, it remains to be seen how this probe will impact Micron's business operations in China. The company has stated that it is cooperating fully with the CAC, but shares are still reeling from the news, underscoring the risks facing US companies operating in the country.
- what happens when countries try to regulate others' business? It's like trying to put a square peg into a round hole 
. The Chinese government is basically saying "you gotta do it our way, Micron" but what if that means sacrificing their own interests in the process? It's all about trust and cooperation 
. If companies can't trust each other, who can we really rely on? 
Either way, it's a slippery slope - if one country starts playing hardball, others might feel forced to follow suit. It's like dominoes, and before you know it, everyone's getting burned 
.
. Sometimes, the best way forward is to find common ground and work together 
micron should really think twice about getting involved in a market where the government can basically shut you down at any moment 
china is not happy about those restrictions on tech exports and now they're hitting micron with a cybersecurity probe 
what's next? 
and good luck to them 
It's like they're trying to squeeze every last penny out of them! 
I mean, we already knew tensions were high between the US and China, but this is getting serious. 
That's a major drop, dude. And if we look at the chart... 
it shows us that their stock price has been declining over the past few months, too.
. It seems like a classic case of "do as we say, not as we do" 
A probe into Apple or Google wouldn't surprise me either 
.
. They've been in this game for a while and know how to navigate these kinds of challenges. Plus, they're cooperating with the CAC, which is a good sign that they're taking their responsibilities seriously.
. The tech industry is all about innovation and progress, but it's also got its fair share of geopolitics thrown in for good measure 
this is getting crazy