Micron Technology, a US-based semiconductor giant, is under scrutiny from Chinese authorities over cybersecurity concerns. The Cyberspace Administration of China (CAC) has launched an investigation into Micron's products sold in the country, citing national security risks.
The move comes as tensions between the US and China escalate, with both nations imposing restrictions on each other's technology exports. Japan, a key US ally, has also announced plans to restrict the sale of advanced chip manufacturing equipment to countries including China.
Beijing views these measures as a threat to its ambitions to become a tech superpower. The Chinese government has criticized such restrictions, saying they are "firmly opposed" to the move.
As part of its bid to woo foreign investments and boost growth, Beijing is actively courtting global CEOs with promises of a favorable business environment. However, the government is also exerting pressure on foreign companies to align their operations with its agenda.
Micron has faced growing scrutiny in China, with authorities closing the company's Beijing office last month and detaining staff. Deloitte was suspended from operating in Beijing for three months earlier this year after a fine of $31 million was imposed over alleged lapses in auditing work.
The probe into Micron's products is aimed at ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security. The company has assured CNN that it stands by the security of its products and is cooperating fully with the CAC.
Shares in Micron plummeted 4.4% on Wall Street last week after news of the probe broke, marking the biggest drop in over three months. As a result, the company's revenue from China makes up more than 10%.
The investigation marks a new front in the escalating tech war between the US and China. The stakes are high, with both nations seeking to assert their dominance in the global semiconductor market.
With tensions simmering just below the surface, Micron's future in China remains uncertain. The company must navigate this complex landscape while ensuring that its products meet the highest standards of security and quality.
In a statement last week, Micron warned that the Chinese government may restrict its participation in the Chinese market or prevent it from competing effectively with local companies. This warning highlights the risks faced by foreign companies operating in China, where the rules are often unclear and the stakes can be high.
As the tech tensions between the US and China continue to escalate, companies like Micron will have to tread carefully to avoid being caught in the crossfire.
The move comes as tensions between the US and China escalate, with both nations imposing restrictions on each other's technology exports. Japan, a key US ally, has also announced plans to restrict the sale of advanced chip manufacturing equipment to countries including China.
Beijing views these measures as a threat to its ambitions to become a tech superpower. The Chinese government has criticized such restrictions, saying they are "firmly opposed" to the move.
As part of its bid to woo foreign investments and boost growth, Beijing is actively courtting global CEOs with promises of a favorable business environment. However, the government is also exerting pressure on foreign companies to align their operations with its agenda.
Micron has faced growing scrutiny in China, with authorities closing the company's Beijing office last month and detaining staff. Deloitte was suspended from operating in Beijing for three months earlier this year after a fine of $31 million was imposed over alleged lapses in auditing work.
The probe into Micron's products is aimed at ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security. The company has assured CNN that it stands by the security of its products and is cooperating fully with the CAC.
Shares in Micron plummeted 4.4% on Wall Street last week after news of the probe broke, marking the biggest drop in over three months. As a result, the company's revenue from China makes up more than 10%.
The investigation marks a new front in the escalating tech war between the US and China. The stakes are high, with both nations seeking to assert their dominance in the global semiconductor market.
With tensions simmering just below the surface, Micron's future in China remains uncertain. The company must navigate this complex landscape while ensuring that its products meet the highest standards of security and quality.
In a statement last week, Micron warned that the Chinese government may restrict its participation in the Chinese market or prevent it from competing effectively with local companies. This warning highlights the risks faced by foreign companies operating in China, where the rules are often unclear and the stakes can be high.
As the tech tensions between the US and China continue to escalate, companies like Micron will have to tread carefully to avoid being caught in the crossfire.
This whole thing is getting super crazy! Like, I get it, national security concerns and all that, but can't they just communicate with each other instead of all this investigation drama? 
Companies like Micron are already feeling the squeeze, with their stock prices tanking and revenue from China being a big deal. It's not exactly a welcoming environment for foreign businesses to operate in, if you ask me. 
I feel bad for Deloitte, getting suspended for $31 million - that's some serious fines! 
I don't think Micron wants to be stuck in the middle of this, you feel me?
. It's like, come on guys, you're accusing this massive US corporation of putting national security at risk? And now Micron is basically saying that if China restricts its participation in the market, it'll just leave? That sounds super reasonable to me 
. I mean, if China can't guarantee a stable business environment, what's Micron supposed to do? It's not like they're trying to be malicious or anything 
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. As Micron's shares plummeted after the probe broke, it highlights the risks faced by foreign companies operating in China, where the rules can be opaque and the stakes are extremely high 
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. The Chinese government's criticism of restrictions on technology exports serves as a stark reminder that national security concerns can be used to justify draconian measures against perceived adversaries 
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. Ultimately, this situation underscores the need for greater transparency and cooperation between governments, corporations, and international organizations to prevent a global trade war from escalating further 
this is getting so intense! 
Micron's products are literally being scrutinized by Chinese authorities and it's all because of the tech war between the US and China 
I mean, can you even imagine having to navigate all that complexity? 
The stakes are super high and if Micron doesn't get its act together, it could be big trouble 
. The US is all like "we're watching you" but China's just pushing back hard 
. Micron needs to keep its cool though, can't let the Chinese government get the best of them 
. It's gonna be a wild ride for companies operating in China...
this whole thing is getting super intense with both the us and china going at it over tech supremacy 
i feel bad for micron's staff who are already dealing with the chinese government's scrutiny 
I'm worried about Micron's future in China – it's such a huge market for them. If they get shut down or restricted from competing, it could be disastrous.
Companies need to start prioritizing security and quality over profits and growth – that's gotta be worth more than just saving face. 
!
they're basically saying micron's products could be a threat to national security...like what even is that? 
I just hope they can figure out a way to navigate this complex situation without losing everything