Webdesk: The Chinese cyberspace authority prohibited US Micron Technology from selling memory chips to local consumers. It is in aftermath of the latest trade dispute between Washington and Beijing. As the chipmaker failed its network security inspection.
The largest US memory chipmaker, Micron, failed its network security inspection Sunday. It prompted the Chinese authorities to bar critical infrastructure operators from buying from the company.
Risks and company products were unknown.
Micron’s main Chinese customers are consumer electronics companies, so analysts expect little immediate impact. They also cautioned that the decision could lead corporations to cease their Micron supply chains due to risks.
China’s move angered the US. Sunday, a Commerce Department official stated, “We firmly oppose restrictions that have no basis in fact.”
“This action, along with recent raids and targeting of other American firms, is inconsistent with [China’s] assertions that it is opening its markets and committed to a transparent regulatory framework,” added the spokesman.
After Chinese police raided Mintz Group and Bain, trade tensions between the two nations have increased.
“[We] had received the regulator’s review and looked forward to continuing to engage in discussions with Chinese authorities,” Micron said Sunday.
Its the first US corporation to investigated by Chinese officials since Washington imposed export curbs to prevent China from improving its military capabilities with chip-making technologies.
The prohibition comes after the G7 agreed to “de-risk, not decouple” from China and US President Joe Biden advocated for a “open hotline” between Washington and Beijing.
The US Commerce Department said it would personally contact Beijing authorities to clarify their actions.
“We also will engage with key allies and partners to ensure we closely coordinated to address distortions of the memory chip market caused by China’s actions,” the department stated.
