Last week, when her senior officials China hosted dozens of American and European businessmen at various economic forums, their message was clear: China is open to enterprises. However, a few days later, the dreaded regulators told her something very different. Beijing announces investigation into leading US industrial enterprises Micron Technology microprocessors on cybersecurity. The move, which many analysts have described as expected, is China’s most significant retaliatory move against Washington and his attempt to block his progress in his microprocessors top technology. The Chinese Internet regulator explained that the investigation was “information infrastructure supply chain security.” Mao Ning, a foreign ministry spokeswoman, called the investigation a “routine regulatory measure” and explained that it focused on products that could harm the country’s national security.

Micron Technology of Idaho manufactures memory microprocessors used in cell phones, computers, data centers, automobiles, and various electronics. It has established links with China for many years, and for America it is the emblem of its dominance in the microprocessor industry. Now, however, he was infatuated with China’s drive to become self-sufficient in high technology. James Reese, a Republican senator from Idaho, explained China’s actions as an attempt to undermine the US position in the industry. In a related statement, he stressed that “this move shows the American people what China is, an aggressive country that has never been interested in economic cooperation.” The news sent Micron’s stock down 6%, with Micron itself announcing that operations in China are operating as normal and that it is “fully cooperating” with the authorities.

China’s Internet regulator explained that the problem was “information infrastructure supply chain security.”

China’s conflicting messages reflect the delicate balance its leadership is trying to maintain. He is trying to prop up an economy that is still trying to restart after three years of tight restrictions by trying to appear tough and unyielding in the face of Washington’s hostility. This was preceded in October by Washington’s sharp restrictions on China’s microprocessor industry, some of which hurt Micron’s competitors.

Micron opened its first Chinese factory in 2006 in Xi’an. The company employs about 3,000 employees throughout the country, who, among other things, are involved in customer service and sales. It has a center in Shanghai where microchips are developed, and branches in Beijing and Shenzhen. But now that China is more aggressively pushing its ambitious plan to become a globally competitive technology powerhouse, Micron is at the center of competition with the US. In 2018, the US Department of Justice launched an investigation into the microprocessor industry in China and Taiwan, which it accused of stealing Micron’s trade secrets. It should be noted that one of these companies pleaded guilty, while investigations are ongoing for the rest.

According to Hui He, head of technology research company Omdia, Micron has given “clear signals” over the past two years that it intends to reduce its presence in China. She believes that the industry in question is particularly willing to coordinate with the policies of the US government. Indeed, since January of last year, Micron began cutting its staff in China and winding down operations at its microchip development center in Shanghai. Like many other Western industries of its kind, it had a strong presence in Asia with many manufacturing facilities, including those in Singapore and Taiwan. However, the company recently announced plans to invest $100 billion in a manufacturing facility in New York. And President Biden called it “one of the most important investments in American history.”