China prohibits the purchase of Micron chips for critical infrastructure investments.
China has banned critical information infrastructure (CII) operators from buying products from American chipmaker Micron Technology, citing serious security risks.
The directive from Beijing comes on the same day American President Joe Biden suggests tensions between the two economic giants may be easing soon.
Cyberspace Administration of China (CAC) on Sunday said a network security review was conducted to assess Micron’s products that were sold in the country. It said the review uncovered serious network security issues that could pose major risks to the country’s critical information infrastructures and national security.
This led the Network Security Review Office, which conducted the assessment, to conclude that Micron’s products had failed to meet requirements outlined in the review.
CAC further said it supports global organizations looking to tap the Chinese market, as long as they do so according to local laws and regulations.
In a statement issued to various media outlets, Micron confirmed it had received the result of the review and was assessing its next steps.
In its response, the American Commerce Department said in a BBC report that it opposed restrictions that had “no basis in fact”. The American government agency described the Micron ban and recent raids targeting American companies as “inconsistent” with the Chinese government’s commitment to a transparent regulatory framework and to open up its market.
The move may be deemed a tit-for-tat response to the Biden administration’s years-long sanctions impacting Chinese telcos and tech companies such as Huawei Technologies, which was barred from using American technology and software to design and manufacture its semiconductors abroad.
Last August, the American government also signed into law the American Chips and Science Act, which aims to boost the country’s semiconductor manufacturing sector. Beijing had criticized the Bill, saying it contained provisions restricting “normal economic, trade, and investment” activities of Chinese market players.
The ongoing Sino-American tension seemed to be heading for calmer waters when Biden on Sunday said relations between the two countries might “thaw very shortly”, reported The Japan Times. The American President was speaking in Hiroshima following the Group of Seven summit.
Top defense delegates from both economic giants are expected to attend the Shangri-La Dialogue in Singapore next month.
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.