China has launched a cybersecurity probe into US-based memory chip maker Micron Technology as part of its growing push against perceived threats from Western companies in the technology sector.
The Cyberspace Administration of China (CAC) announced on Friday that it will be reviewing all products sold by Micron in the country, citing concerns over potential cybersecurity risks and hidden product problems. The move is aimed at safeguarding key information infrastructure supply chains and maintaining national security, according to a statement from the CAC.
The development comes as tensions between China and its US allies in Asia and Europe continue to escalate. In recent weeks, Japan, the United States, and the Netherlands have all announced new restrictions on the sale of advanced semiconductor technology to China, citing concerns over national security and data protection.
Micron, one of America's largest memory chip makers, derives more than 10% of its revenue from China. The company has warned in an earlier filing that it faces risks associated with doing business in the country, including potential restrictions on participation in the Chinese market.
Shares in Micron plummeted by 4.4% on Wall Street last week after news of the probe broke, marking the biggest single-day drop in over three months. The company's stock has continued to decline since then, falling another 1.2% on Monday.
China has long criticized restrictions on tech exports, saying they are a form of "trade bullying" and would undermine its bid to become a global leader in technology. However, Beijing is increasingly exerting pressure on foreign companies to bring their operations into line with its agenda.
In recent months, Chinese authorities have taken steps to crack down on foreign businesses operating in the country, including suspending Deloitte's operations for three months and imposing a fine of $31 million over alleged lapses in its auditing work. The Beijing office of US corporate intelligence firm Mintz Group was also closed last month after five local staff were detained.
The latest move by the CAC against Micron is seen as part of China's broader efforts to boost growth and job creation by wooing foreign investments. However, it also highlights the country's growing assertiveness in enforcing its own rules on the flow of technology into the region.
As tensions between China and the West continue to escalate, foreign companies are facing increasing pressure to navigate a complex web of regulations and restrictions on their operations in the country.
The Cyberspace Administration of China (CAC) announced on Friday that it will be reviewing all products sold by Micron in the country, citing concerns over potential cybersecurity risks and hidden product problems. The move is aimed at safeguarding key information infrastructure supply chains and maintaining national security, according to a statement from the CAC.
The development comes as tensions between China and its US allies in Asia and Europe continue to escalate. In recent weeks, Japan, the United States, and the Netherlands have all announced new restrictions on the sale of advanced semiconductor technology to China, citing concerns over national security and data protection.
Micron, one of America's largest memory chip makers, derives more than 10% of its revenue from China. The company has warned in an earlier filing that it faces risks associated with doing business in the country, including potential restrictions on participation in the Chinese market.
Shares in Micron plummeted by 4.4% on Wall Street last week after news of the probe broke, marking the biggest single-day drop in over three months. The company's stock has continued to decline since then, falling another 1.2% on Monday.
China has long criticized restrictions on tech exports, saying they are a form of "trade bullying" and would undermine its bid to become a global leader in technology. However, Beijing is increasingly exerting pressure on foreign companies to bring their operations into line with its agenda.
In recent months, Chinese authorities have taken steps to crack down on foreign businesses operating in the country, including suspending Deloitte's operations for three months and imposing a fine of $31 million over alleged lapses in its auditing work. The Beijing office of US corporate intelligence firm Mintz Group was also closed last month after five local staff were detained.
The latest move by the CAC against Micron is seen as part of China's broader efforts to boost growth and job creation by wooing foreign investments. However, it also highlights the country's growing assertiveness in enforcing its own rules on the flow of technology into the region.
As tensions between China and the West continue to escalate, foreign companies are facing increasing pressure to navigate a complex web of regulations and restrictions on their operations in the country.
I'm low-key worried about the implications of this probe 
. Micron's got a huge presence in China, and if they're forced out, it could have major ripple effects on global supply chains 
. The US is already getting pretty aggressive with its trade policies, but China's pushing back hard 
. This whole thing feels like a game of cat and mouse, with companies caught in the middle 
. And let's be real, this isn't just about tech - it's about the bigger picture of global politics 
. I guess only time will tell how this all plays out 
...
And now they're coming after a US company with significant revenue ties to China... it doesn't feel right. The fact that Micron was warned about risks associated with doing business in China and still got caught off guard kinda suggests that this probe might not be as routine as everyone thinks 
.
. i'm all for protecting national security & whatnot, but come on, can't we find a way to do that without strangling foreign businesses? 
They're essentially saying that any company doing business with them has to play by their rules, and if you don't comply, there are serious consequences.
It's not just about the potential risks of doing business in China, it's also about the uncertainty of what those rules will be and how they'll be enforced.
china's going after micron because it thinks western companies are getting too comfortable. but honestly, can't they just chill for once? 
i mean, micron knows the risks of doing business in china and now they're getting punished. this whole thing feels like a game of global tech tug-of-war 
. like 10% of microns revenue comes from china lol what a power move 
. but seriously, whats next? china is just trying to exert control over the tech industry and show us who's boss 
. micron stock is tanking cuz its trying to navigate all these restrictions 
. The fact that Micron has warned about risks associated with doing business in China and still managed to get hit with a probe just goes to show how unpredictable the regulatory landscape is over there.
.
It's like, "Hey, we want to invest in your country, but you gotta play by our rules". What's the harm in that?