hong kong
cnn
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China has launched a cybersecurity investigation against Micron Technology, one of America’s largest memory chip makers. In apparent retaliation after US allies in Asia and Europe announced new sanctions on sales of key technology to Beijing.
The Cybersecurity Administration of China (CAC) will review products sold by Micron in the country, according to a statement from the watchdog late Friday.
The move is aimed at “ensuring the security of supply chains of key information infrastructure, preventing cybersecurity risks caused by hidden product problems, and maintaining national security.”
It came the same day US ally Japan said it would restrict exports of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands.
Washington and its allies have announced curbs on China’s semiconductor industry, which is central to Beijing’s effort to become a tech superpower.
Last month, the Netherlands also imposed 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 chip-making equipment without a license.
Micron told CNN it was aware of the review.
“We are in touch with CAC and are cooperating fully,” it said, adding that it is committed to the safety of its products. “Micron’s product shipments, engineering, manufacturing, sales and other operations are operating normally.”
shares in Micron fell 4.4% on Wall Street on Friday after the news, its biggest decline in more than three months. On Monday, they closed down another 1.2%. Micron gets more than 10% of its revenue from China.
In earlier filings, the Idaho-based company had warned about such risks.
“The Chinese government may restrict us from participating in the China market or prevent us from competing effectively with Chinese companies,” it said last week.
China has strongly criticized restrictions on technology exports, saying last month it “firmly opposes” such measures.
In efforts to boost growth and job creation, Beijing is trying to lure foreign investment as it grapples with growing economic challenges. Newly appointed Prime Minister Li Qiang and several top economic officials are readying the welcome wagon for global CEOs, promising that they will “provide a good environment and services.”
But Beijing has also increased pressure on foreign companies to bring them in line with its agenda.
Last month, authorities closed the Beijing office of US corporate intelligence firm Mintz Group and detained five local employees.
A few days earlier, he had suspended Deloitte’s operations in Beijing for three months and fined it $31 million over alleged lapses in its audit work of the state-owned troubled debt manager.