Micron Banned By China Amidst US Trade Tensions
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China has stopped US tech company Micron Technology from selling its memory chips in the country. The Chinese cyberspace regulator made the decision. They said Micron had not passed its network security check. Washington and Beijing are in a trade dispute.
On Sunday, a Chinese regulator said that Micron, a large US memory chip maker, did not pass their security check. This means that operators who control important infrastructure won't be allowed to buy from Micron.
We don't know what risks there are or what products will be affected.
Analysts say there won't be a big effect on Micron. Their main Chinese customers make consumer electronics. But, companies might stop buying Micron's supplies because of the risks.
The US isn't happy about China's choice. The Commerce Department talked about it on Sunday. They don't think the limitations are fair.
The spokesperson said that China's actions are not matching with their claims of open markets and clear regulations. They have taken measures like raids and targeting of American firms.
The two countries have been having more trade issues lately. This started happening after the Chinese authorities went to the US company, Mintz Group, and the management firm, Bain.
Micron said on Sunday that they had received the regulator's review. They are looking forward to continuing discussions with Chinese authorities.
Chinese officials are inspecting a US company. The US government wants to stop China from using these tools to improve their military.
The ban happened because G7 wants to reduce risks with China. They don't want to completely separate from China. Joe Biden wants an open line of communication between the US and China.
The US Commerce Department will talk with Beijing authorities directly. They want to know what Beijing did.
The department stated that they will collaborate with important allies and partners. They want to work closely with them to tackle the memory chip market's challenges. These difficulties have emerged due to China's actions.
Jefferies says Micron made $5.2 billion from China last year. That includes $1.7 billion from Hong Kong. This all adds up to 16% of Micron's total revenue.
China wants to be more independent, so it's using less foreign-made computer chips. This has been happening for a few years. China buys the most computer chips in the world.
