Hong Kong
CNN
—
China has launched a cybersecurity investigation into Micron Technology, one of the largest US memory chip makers, in apparent retaliation after US allies in Asia and Europe announced new restrictions on the sale of key technologies to Beijing.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement from the watchdog late Friday.
The move aims to “ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product issues, and maintain national security,” it notes.
The same day, Japan, a U.S. ally, announced it would restrict exports of cutting-edge chipmaking equipment to countries like China, following similar measures taken by the United States and the Netherlands.
Washington and its allies have announced restrictions on China’s semiconductor industry, striking at the heart of Beijing’s bid to become a technology superpower.
Last month, the Netherlands also unveiled new restrictions on foreign sales of semiconductor technology, citing the need to protect national security. In October, the United States banned Chinese companies from purchasing 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 are fully cooperating,” he said, adding that he was ensuring the safety of its products. “Micron’s product shipping, engineering, manufacturing, sales and other functions are operating normally.”
Actions in Micron fell 4.4% on Wall Street on Friday following this news, the biggest drop in more than three months. On Monday, they closed down 1.2%. Micron derives more than 10% of its revenue from China.
In an earlier filing, the Idaho-based company warned of such risks.
“The Chinese government could prevent us from participating in the Chinese market or prevent us from competing effectively with Chinese companies,” he said last week.
China has sharply criticized restrictions on technology exports, saying last month that it “firmly opposes” such measures.
In its efforts to spur growth and job creation, Beijing is seeking to attract foreign investment as it grapples with growing economic challenges. New Premier Li Qiang and several top economic officials rolled out the welcome wagon for global CEOs and promised they would “provide a good environment and good services.”
But Beijing is also putting increasing pressure on foreign companies to comply with its agenda.
Last month, authorities closed the Beijing office of Mintz Group, a US corporate intelligence firm, and arrested five local employees.
Days earlier, they suspended Deloitte’s operations in Beijing for three months and fined it $31 million for alleged failings in its work auditing a troubled public debt manager.