China’s Cyberspace Administration Raises Alarms Over Micron Technology’s Products

China’s cyberspace regulator, the Cyberspace Administration of China (CAC), announced on Sunday that Micron Technology, the largest memory chip manufacturer in the United States, poses “serious network security risks.” As a result, the Chinese government has decided to ban the firm’s products from being used in critical infrastructure projects within the country. This move marks China’s first major action against a US chip maker and comes amid escalating tensions between Beijing and Washington.

In its statement, the CAC explained, “The review found that Micron’s products have serious network security risks, which pose significant security risks to China’s critical information infrastructure supply chain, affecting China’s national security.” However, no specific details regarding the identified risks or the specific Micron products involved were provided by the regulator.

A spokesperson from Micron confirmed that the company had received the CAC’s notice and expressed their intention to evaluate the conclusion and determine the next steps. They also stated, “We look forward to continuing to engage in discussions with Chinese authorities.”

In response to China’s ban, the US government declared its intention to collaborate with allies in addressing what it referred to as “distortions of the memory chip market caused by China’s actions.” A spokesperson from the US Commerce Department stated, “We firmly oppose restrictions that have no basis in fact.” Additionally, they criticized China’s recent actions against American firms, stating that such actions contradicted China’s claims of market openness and a transparent regulatory framework.

China’s decision to ban Micron’s products is the latest development in an ongoing dispute between the United States and China, which has witnessed the US implementing several measures against China’s chip manufacturing industry. Notably, the CAC’s announcement came just one day after the G7 leaders meeting in Japan, during which a joint statement was issued, criticizing China’s economic coercion tactics.

US President Joe Biden, commenting on the G7 nations’ stance toward China, stated that they were seeking to “de-risk and diversify” their relationship with China and emphasized the need to diversify supply chains. Micron’s Chief Executive, Sanjay Mehrotra, was present at the G7 summit in Hiroshima as part of a group of business leaders.

Last week, Micron announced its plan to invest approximately 500 billion yen ($3.6 billion; £2.9 billion) in technology development in Japan, signaling its commitment to expanding its presence in the region.