China Launches Cybersecurity Probe into US Chip Maker Micron Technology Amid Rising Tech Tensions
In a move that underscores the escalating tech tensions between the US and China, Beijing has launched a cybersecurity probe into US-based chip maker Micron Technology. The probe is aimed at "ensuring the security of key information infrastructure supply chains" and preventing potential cybersecurity risks caused by products sold in China.
The Cyberspace Administration of China (CAC) announced on Friday that it will review products sold by Micron in the country, following a similar move by the US to restrict the export of advanced chip manufacturing equipment to countries including China. The CAC's move is seen as a response to Washington's curbs on China's semiconductor industry, which strike at the heart of Beijing's bid to become a tech superpower.
Shares in Micron plummeted 4.4% on Wall Street following the news, their 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 about potential risks associated with exporting to the country.
In an interview last week, Micron's CEO said that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies." The company has since cooperated fully with the CAC and assured investors that it stands by the security of its products.
The probe is part of a broader effort by Beijing to exert pressure on foreign companies to bring them into line with its agenda. In recent months, authorities have closed the Beijing office of US corporate intelligence firm Mintz Group and detained five local staff. Deloitte's operations in Beijing were also suspended for three months and the company was fined $31 million over alleged lapses in auditing a state-owned distressed debt manager.
As tensions between the US and China escalate, Beijing is seeking to woo foreign investments to boost growth and job creation. The newly minted premier Li Qiang has been rolling out the welcome wagon for global CEOs, promising them a "good environment and services."
However, the CAC's move against Micron Technology marks a new front in Beijing's pressure campaign against foreign companies. The probe raises questions about the extent to which China will push its boundaries in exerting control over foreign businesses operating in its territory.
China's strong opposition to restrictions on tech exports has previously been voiced by officials such as Premier Li Keqiang, who has warned that "any measures taken by countries targeting Chinese technology enterprises are unacceptable." The country's stance is likely to continue to be a point of contention in the ongoing trade tensions between Washington and Beijing.
In a move that underscores the escalating tech tensions between the US and China, Beijing has launched a cybersecurity probe into US-based chip maker Micron Technology. The probe is aimed at "ensuring the security of key information infrastructure supply chains" and preventing potential cybersecurity risks caused by products sold in China.
The Cyberspace Administration of China (CAC) announced on Friday that it will review products sold by Micron in the country, following a similar move by the US to restrict the export of advanced chip manufacturing equipment to countries including China. The CAC's move is seen as a response to Washington's curbs on China's semiconductor industry, which strike at the heart of Beijing's bid to become a tech superpower.
Shares in Micron plummeted 4.4% on Wall Street following the news, their 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 about potential risks associated with exporting to the country.
In an interview last week, Micron's CEO said that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies." The company has since cooperated fully with the CAC and assured investors that it stands by the security of its products.
The probe is part of a broader effort by Beijing to exert pressure on foreign companies to bring them into line with its agenda. In recent months, authorities have closed the Beijing office of US corporate intelligence firm Mintz Group and detained five local staff. Deloitte's operations in Beijing were also suspended for three months and the company was fined $31 million over alleged lapses in auditing a state-owned distressed debt manager.
As tensions between the US and China escalate, Beijing is seeking to woo foreign investments to boost growth and job creation. The newly minted premier Li Qiang has been rolling out the welcome wagon for global CEOs, promising them a "good environment and services."
However, the CAC's move against Micron Technology marks a new front in Beijing's pressure campaign against foreign companies. The probe raises questions about the extent to which China will push its boundaries in exerting control over foreign businesses operating in its territory.
China's strong opposition to restrictions on tech exports has previously been voiced by officials such as Premier Li Keqiang, who has warned that "any measures taken by countries targeting Chinese technology enterprises are unacceptable." The country's stance is likely to continue to be a point of contention in the ongoing trade tensions between Washington and Beijing.
its like theyre not even trying to hide their intentions anymore, like micron is literally just trying to do business as usual but china is all like "nope, we dont want any part of it" 
anyway, its pretty interesting that the us is basically making a point about how china can't handle being a major player in the tech world 
and then china goes and launches this probe... i think micron should just be honest with itself, like, if theyre really worried about chinese restrictions, maybe they should rethink their business strategy or something? idk its all pretty murky tbh 
This probe into Micron Tech feels like just another step in China's growing tech imperialism 
I mean, they're already exerting pressure on foreign companies to play by their rules, and now they're trying to restrict exports from US-based companies? It's a slippery slope, guys. One thing leads to another, and before you know it, China's got total control over the global chip market 
And what about those 5 US staff detained in Beijing? The CAC's move seems like just another way for them to flex their muscles 
just read this and I'm like wow china's getting serious about cybersecurity probes on US companies... Micron tech is already losing big time 
. China's been getting all up in arms about their tech dominance for ages, and this probe is just another way for them to flex their muscles 
. It's like they're saying "hey, we don't trust you" to companies that sell stuff to China 
. I mean, I get it, security is important, but come on, this feels like a bit of a bluff 
.
. And what really gets me is that China's basically making an example out of this company just to show the world how serious they are about their tech agenda 
. It's like a game of "we're the boss" and everyone else is just along for the ride 
.
china's being super aggressive with its cybersecurity probe on micron tech, it's like they're trying to take down one of the biggest players in the industry 
but at the same time, i can understand why they'd want to protect their own tech interests 
stop sign for chip makers 
but is it fair? 
while others think it's all about 
controlling the market. what's your take on this? 
. I mean, what's next? Are they gonna start telling them how to run their business too? 
It's all about playing hardball and seeing who backs down first, but I'm not sure that's the kind of "good environment" new Premier Li Qiang is talking about 
. Micron's already feeling the heat with 4.4% drop in shares - I'm worried this probe could lead to more damage if they don't stand firm 
. It's like, can't we all just get along and share the chips? 
. The US and China go back and forth like this, each trying to outdo the other with their tech sanctions and trade restrictions 
.
... li qiang promising a "good environment and services" for global CEOs, but really what does that even mean? is it just lip service at this point?! and then there's micron's ceo warning about chinese government restrictions on their access to the market... it's all so complicated. the us china thing is already super messy, now add this cyber probe into the mix and i'm just over here thinking: what's next?! 
its all very confusing, but idk maybe china just wants to keep its tech industry under control 
, which basically means dey r checkin out their products 2 see if dey contain any "sensitive" info 
. dey're basically tryna exert control over foreign companies, and it raises some major red flags 
like china just launched a cyber attack on micron tech without even telling them first 
i feel bad for the employees 
and also what's next?