Micron Technology has been placed under a cybersecurity probe by China's Cyberspace Administration, as Beijing seeks to retaliate against the US for announcing new restrictions on tech exports to China.
The move comes amid growing tensions between the two nations over China's bid to become a global tech powerhouse. The US and its allies have imposed curbs on China's semiconductor industry, which has led to a backlash from Beijing. In response, China has launched an investigation into Micron Technology, one of America's largest memory chip makers.
The probe is aimed at ensuring the security of key information infrastructure supply chains and preventing cybersecurity risks caused by hidden product problems. Micron's products are widely used in China, with over 10% of its revenue coming from the country.
Shares in Micron plummeted on Wall Street after news of the probe broke, falling 4.4% in a single day, the biggest drop in more than three months. The Idaho-based company had warned earlier this year about potential risks to its business in China.
"We are aware of the review and are cooperating fully," said Micron in a statement. "We stand by the security of our products." However, China has criticized restrictions on tech exports, saying it "firmly opposes" such measures.
Beijing is under pressure to boost growth and job creation as the country grapples with mounting economic challenges. The new premier, Li Qiang, has been rolling out the welcome mat for foreign investors, promising a good business environment and services.
However, Beijing has also been exerting growing pressure on foreign companies to bring them into line with its agenda. In recent months, authorities have closed offices of major firms, including Mintz Group and Deloitte's operation in Beijing, over concerns about compliance with Chinese regulations.
The probe into Micron Technology is seen as a test of the US-China tech rivalry, with both sides seeking to assert their dominance in the global semiconductor market. As tensions between the two nations escalate, it remains to be seen how this probe will play out and what impact it may have on trade relations and investment flows between the US and China.
The move comes amid growing tensions between the two nations over China's bid to become a global tech powerhouse. The US and its allies have imposed curbs on China's semiconductor industry, which has led to a backlash from Beijing. In response, China has launched an investigation into Micron Technology, one of America's largest memory chip makers.
The probe is aimed at ensuring the security of key information infrastructure supply chains and preventing cybersecurity risks caused by hidden product problems. Micron's products are widely used in China, with over 10% of its revenue coming from the country.
Shares in Micron plummeted on Wall Street after news of the probe broke, falling 4.4% in a single day, the biggest drop in more than three months. The Idaho-based company had warned earlier this year about potential risks to its business in China.
"We are aware of the review and are cooperating fully," said Micron in a statement. "We stand by the security of our products." However, China has criticized restrictions on tech exports, saying it "firmly opposes" such measures.
Beijing is under pressure to boost growth and job creation as the country grapples with mounting economic challenges. The new premier, Li Qiang, has been rolling out the welcome mat for foreign investors, promising a good business environment and services.
However, Beijing has also been exerting growing pressure on foreign companies to bring them into line with its agenda. In recent months, authorities have closed offices of major firms, including Mintz Group and Deloitte's operation in Beijing, over concerns about compliance with Chinese regulations.
The probe into Micron Technology is seen as a test of the US-China tech rivalry, with both sides seeking to assert their dominance in the global semiconductor market. As tensions between the two nations escalate, it remains to be seen how this probe will play out and what impact it may have on trade relations and investment flows between the US and China.
china's all up in arms over micron tech being scrutinized by their cyber admins lol like, they're trying to be all tough but meanwhile they can't even get their own act together 
it's like, be mad at the us for putting restrictions on tech exports if you're gonna punish a US company anyway? 
micron's products are super popular in china and they're like 10% of their rev or watever... so yeah, it's not a big move by china to go after them 
but at the same time, we gotta keep an eye on how this all plays out cuz if china starts targeting more us companies, that's when things get real 
i mean, it's not like micron isn't aware of the risks or something... they did warn about potential issues earlier this year 
and now look what's happening...
and we can't even imagine how chinese consumers will react if their fave semicondutor brands start getting held back 
How are we supposed to trust their claims when they're basically playing a game of "do as we say or face the consequences"? 
. If the US is really that concerned about China's tech industry, maybe they should focus on strengthening their own cybersecurity measures instead of trying to contain China 
. And what's the real motive here? Is it just about asserting dominance in the global market, or are there other factors at play? I'm not convinced by all this 
The fact is, Micron was warned about potential risks to its business in China already - now they're getting fined for something that's allegedly on their watch? It sounds like a major case of "we didn't check the box" 
This is just fueling the fire and making it harder for both sides to find common ground...
. And now the shares are plummeting? Poor Micron 
...
between the US and China. It's like both sides are playing a game of high-stakes poker, where everyone's trying to outmaneuver each other in the global semiconductor market 
, but it's actually revealing deeper concerns about data security and intellectual property protection 
. If China can't trust US companies to secure their tech supply chains, that's a major blow to the global economy 
.
. I just hope someone on both sides can find a way out of this cycle before it causes too much damage 