China tells tech manufacturers to stop using

Akash Arjun

Global Courant 2023-05-21 20:40:21

BEIJING (AP) — Stepping up a feud with Washington over technology and security, The Chinese government on Sunday told users of computing devices deemed sensitive to stop buying products from the largest U.S. memory chip maker, Micron Technology Inc.

Micron products have unspecified “serious network security risks” that pose a threat to China’s information infrastructure and affect national security, the Cyberspace Administration of China said on its website. The six-sentence statement gave no details.

“Critical information infrastructure operators in China should stop purchasing products from Micron Co.”, the agency said.

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The United States, Europe and Japan are restricting China’s access to advanced chip manufacturing and other technology they say could be used in weapons at a time when President Xi Jinping’s government has threatened to attack Taiwan and is increasingly assertive against Japan and other neighboring countries.

Chinese officials have warned of unspecified consequences but appear to be struggling to find ways to retaliate without hurting China’s smartphone makers and other industries and developing their own processor chip suppliers.

An official review of Micron under China’s increasingly strict information security laws was announced on April 4, hours after Japan joined Washington in restricting Chinese access to technology to make processor chips for security reasons.

Foreign companies have been rocked by police raids on two consultancies, Bain & Co. and Capvision, and a due diligence firm, Mintz Group. Chinese authorities have refused to explain the raids, but said foreign companies are required to comply with the law.

Business groups and the US government have called on authorities to explain the recently expanded legal restrictions on information and how they will be enforced.

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Sunday’s announcement seemed to reassure foreign companies.

“China resolutely promotes high-level openness to the outside world and, as long as it complies with Chinese laws and regulations, welcomes enterprises and various platform products and services from different countries to enter the Chinese market,” the cyberspace agency said.

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Xi accused Washington in March of trying to block China’s development. He called on the public to “dare to fight”.

Despite this, Beijing has been slow to hit back, possibly to avoid disrupting the Chinese industries that produce most of the world’s smartphones, tablet computers and other consumer electronics. They import over $300 billion worth of foreign chips every year.

Beijing is pouring billions of dollars into trying to do just that accelerate chip development and reduce the need for foreign technology. Chinese foundries can provide low-end chips used in cars and home appliances, but cannot support smartphones, artificial intelligence and other advanced applications.

The conflict has sparked warnings that the world could uncouple or split into separate spheres with incompatible technology standards, meaning computers, smartphones and other products from one region wouldn’t work in others. That would increase costs and slow down innovation.

US-China relations are at their lowest level in decades due to disputes over security, Beijing’s treatment of Hong Kong and ethnic Muslim minorities, territorial disputes and China’s multibillion-dollar trade surpluses.

China tells tech manufacturers to stop using

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