China has announced that it considers products made by US memory chip giant Micron Technology to pose a significant risk to national security. The country’s cyberspace regulator declared on Sunday that the leading American memory chip manufacturer presents “serious network security risks.” As a result, Micron’s products will be banned from utilization in key infrastructure projects within China.
This move marks China’s first major action against a US chip maker, further escalating the tensions between Beijing and Washington, particularly concerning technology, which plays a crucial role in global economies. The prolonged dispute has witnessed the US imposing a series of measures targeting China’s chip manufacturing industry and making substantial investments to strengthen America’s semiconductor sector.
The Cyberspace Administration of China (CAC) stated that Micron’s products, following a review, were found to possess significant network security risks that could jeopardize China’s critical information infrastructure supply chain and national security. However, specific details regarding the identified risks or the specific Micron products affected were not provided by the CAC.
A spokesperson from Micron confirmed receiving the notice from the CAC and expressed the company’s intention to evaluate the conclusion and consider their next steps. They also expressed willingness to continue engaging in discussions with Chinese authorities.
In response, the US government expressed its commitment to collaborating with allies to address what it deemed as “distortions of the memory chip market caused by China’s actions.” The US Commerce Department spokesperson firmly opposed restrictions that lacked factual basis, highlighting that such actions were inconsistent with China’s claims of market openness and a transparent regulatory framework.
The CAC’s announcement followed a joint statement by G7 leaders in Japan, which criticized China for various issues, including economic coercion. US President Joe Biden also remarked that G7 nations were seeking to diversify and reduce risks in their relationship with China, which involved steps to diversify supply chains. Micron’s CEO, Sanjay Mehrotra, was present at the G7 summit in Hiroshima as part of a group of business leaders.
Notably, Micron had recently announced its plans to invest approximately 500 billion yen ($3.6 billion; £2.9 billion) in technology development in Japan.