China Declares Micron Technology’s Products as National Security Threat, Imposing Ban on Key Infrastructure Projects.
In a significant development, China’s cyberspace regulator declared on Sunday that Micron Technology, the leading American memory chip manufacturer, presents significant network security risks. Consequently, the company’s products will be prohibited from involvement in crucial infrastructure projects within the world’s second-largest economy. This action marks China’s first major step against a US-based chip maker, intensifying the escalating tensions between Beijing and Washington.
China Deems Micron Products a National Security Risk, Restricts Access to Critical Information Infrastructure
In a statement, the Cyberspace Administration of China (CAC) announced that their review has identified significant network security risks associated with Micron’s products, which could jeopardize China’s critical information infrastructure supply chain and national security. The CAC, however, did not disclose specific details regarding the identified risks or the affected Micron products.
Micron confirmed receiving the notice from the CAC and expressed their intent to evaluate the conclusion while considering their next steps. The company remains committed to engaging in discussions with Chinese authorities.
In response, the US government pledged to collaborate with allies to address what it perceives as distortions caused by China’s actions in the memory chip market. The US Commerce Department spokesperson firmly opposed restrictions lacking factual basis, criticizing China for its recent raids and targeting of American companies. The spokesperson added that these actions contradicted China’s claims of market openness and a transparent regulatory framework.
The CAC’s announcement marks the latest development in the ongoing dispute between Washington and Beijing, where the US has implemented several measures against China’s chip-making industry. Coincidentally, the CAC’s announcement came shortly after a G7 leaders’ meeting in Japan, during which a joint statement criticized China, including its employment of “economic coercion.”
US President Joe Biden, speaking after the G7 summit, emphasized the nations’ intent to mitigate risks and diversify their relationship with China, particularly through steps to diversify supply chains. Micron’s CEO, Sanjay Mehrotra, attended the summit alongside other business leaders. In a separate announcement last week, Micron disclosed plans to invest approximately 500 billion yen ($3.6 billion; £2.9 billion) in technological development in Japan.
