Tech Tensions between China and the US escalates after US allies in Asia and Europe annountced restrictions on the sale of key technology to China. The Cyberspace Administration of China (ACA) has launched a probe into once of the America’s biggest memory chip makers, Micron Technogogy because of the cybersecury concerns. This action is perceived as an apparent retaliation.
The move of China come on the same day that Japan government said that it would restrict the export of advanced chip manufacturing equipment to China to curb China’s semiconductot industry, following the similar moves by the US and other allies.
ACA stated that the aim of this move is to targeting on “ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden products problems, and maintaining national security.”
Micron Technology told CNN it was aware of the review from China authority and they are in communication with the CAC and are cooperating fully. Mircon derives more than 10% of its revenue from China. Its shares sank 4.4 % on Wall Street on Friday and closed another 1.2% lower on Monday following the news.