
On Sunday Beijing urged all Chinese companies that process critical information to stop all purchases of its products. Micron TechnologiesAmerican industry microprocessors used in telephones, computers and various electronics. Many analysts interpret the move as retribution for her efforts. Washington to block his access China in microprocessors high-tech.
The Chinese cybersecurity authority announced that after a cybersecurity audit, it found that the industry’s products pose “serious security risks” that could compromise China’s critical information infrastructure supply chain and threaten national security. This is the latest step in the trade war between Beijing and Washington, which is changing the structure of the global microprocessor industry. The decision could have a domino effect in China’s supply chains as Micron’s Chinese customers try to replace their microprocessors with domestic or South Korean ones. And South Korean Samsung SK and Hynix are competitors to Micron and already have significant operations in China. Beijing began security checks microns at the end of March as a “routine regulatory measure”.
This was preceded in October by Washington’s decision to impose restrictions on China’s microprocessor industry. Micron has said from the outset that it is fully cooperating with the authorities and that its business in China is operating as normal. Now, commenting on Beijing’s decision, the statement says it is “evaluating the findings and considering what the next steps will be.” However, he added that he was still negotiating with the Chinese authorities.
Since March, China has been furiously trying to protect its domestic microprocessor industry. Beijing has spent billions of dollars to become self-sufficient, and Chinese companies are turning to all supply chains in an attempt to replace Western microprocessors and their components. Chinese authorities have not commented on their dangerous findings. They also didn’t say what they want companies to do as part of a cybersecurity audit. For its part, the US Department of Commerce stressed that the action against Micron “combined with raids on other targeted US companies is inconsistent with China’s claim that it has opened up its markets and is committed to transparency in its regulatory framework.” .
According to Graham Webster, editor-in-chief of the DigiChina project at Stanford University’s Center for Cyber Policy, the risk Chinese authorities see includes the possibility of further sanctions from Washington. He added that China’s decision could be “a risk-mitigation measure to avoid further dependence on U.S. supplies that could be interrupted.” Meanwhile, Washington has asked South Korean officials not to let their industries rush to fill the void if Micron can’t sell to China. As for the impact of this decision on Micron, the company said in 2022 that its sales in China will reach $3.3 billion, nearly 11% of its international turnover of $30.8 billion.
Source: Kathimerini

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