Hong Kong
CNN
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China has launched a cybersecurity probe into Micron Technology, one of America’s largest memory makers, In apparent retaliation after US allies in Asia and Europe announced new restrictions on the sale of key technology in Beijing.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement on The Watchdog later on Friday.
The measure aimed at “Ensuring the Security of Key Information in the infrastructure chains of supporturture chains, preventing cybersecurity risks caused by problems of control, and maintaining national security,” it was noted.
It came on the same day that Japan, a US ally, said it would restrict exports of former Chinese equipment including those from NETSITA and the Netherlands.
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 chipmaking equipment without a license.
Micron told CNN it was aware of the review.
“We are in communication with the CAC and cooperate fully,” it said, adding that it is through the security of its products. “Micron’s product shipments, engineering, manufacturing, sales and other functions are operating as normal.”
Participating in Micron tumbled 4.4% on Wall Street on Friday after the news, its biggest drop in more than three months. On Monday, they closed another 1.2% lower. Micron gets more than 10% of its revenue from China.
In a early filingthe Idaho-based company warns of such risks.
“The Chinese government may prevent us from participating in the Chinese market or may prevent us from Chinese companies,” it said last week.
China has strongly criticized the restrictions on Tech exports, saying last month that it was “strongly opposed” to such measures.
In efforts to boost growth and job creation, Beijing seeks to woo foreign investment as it grapples with economic challenges. The newly minted premier li Qiang and many top economic officials are moving in the welcome wagon for ceo’s in the global and prompting that they “provide a good environment and service.”
But Beijing is also putting increasing pressure on foreign companies to bring them into line.
Last month, authorities closed the Beijing Office of the Mintz Group, a US intelligence firm, and detained five local staff.
Days earlier, they suspended the operation of Deloitte in Beijing for three months and imposed a fine of $ 31 million owed to the evasion of the state debt.