China has barred leading chipmaker Micron from participating in vital infrastructure projects.
Micron Technology’s goods, according to China, pose a national security danger.
On Sunday, the country’s cyberspace regulator declared that America’s largest memory chip manufacturer poses “serious network security risks.”
It means that the company’s equipment will be prohibited from being used in important infrastructure projects in the world’s second largest economy.
As tensions between Beijing and Washington rise, this is China’s first serious move against a US chipmaker.
“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,” stated the Cyberspace Administration of China (CAC) in a statement.
The CAC did not provide specifics about the hazards it claimed to have discovered, or which Micron products they were discovered in.
According to a Micron spokeswoman, the business “received the CAC’s notice following its review of Micron products sold in China.”
“We are reviewing the findings and determining our next steps.” “We look forward to continuing our discussions with Chinese officials,” they added.
In response, the US stated that it would collaborate with partners to address “distortions in the memory chip market caused by China’s actions.”
“We firmly oppose restrictions that have no basis in fact,” a representative for the US Commerce Department stated.
“This action, along with recent raids and targeting of other American firms, is inconsistent with [China’s] assertions that it is opening its markets and committed to a transparent regulatory framework,” the statement continued.
The CAC declaration is the latest episode in an ongoing conflict between Washington and Beijing, in which the US has imposed a variety of sanctions on China’s chip manufacturing business.
The CAC news also came a day after G7 leaders met in Japan and published a united statement criticizing China, including its use of “economic coercion.”
On Sunday, US Vice President Joe Biden stated that the G7 nations wanted to “de-risk and diversify our relationship with China.”
“That means taking steps to diversify our supply chains,” he says.
As part of a delegation of corporate leaders, Micron CEO Sanjay Mehrotra attended the summit in Hiroshima.
The corporation announced last week that it would invest roughly 500 billion yen ($3.6 billion; £2.9 billion) in Japan to develop technology.