The government of China on Sunday urged owners of computer equipment deemed sensitive to cease purchasing goods from Micron Technology Inc., the largest US memory chipmaker, in an effort to escalate its dispute with Washington over technology and security.
According to the Cyberspace Administration of China’s website, Micron devices have unidentified severe network security concerns that endanger China’s information infrastructure and compromise national security. Its concise six-sentence summary was vague.
Global Powers Restrict China from Advanced Technology
At a time when President Xi Jinping’s administration has threatened to attack Taiwan and is becoming more belligerent toward Japan and other neighbors, the United States, Europe, and Japan are restricting China’s access to cutting-edge chipmaking and other technology.
Chinese officials have threatened vague repercussions, but they seem to be at a loss for how to respond without harming the country’s smartphone manufacturers, other industries, or plans to establish its own processor chip suppliers.
On April 4, hours, it was revealed that Micron would be subject to an official review under China’s increasingly strict information security legislation.
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US Authorities & Business Groups on Information Restrictions
Foreign companies are concerned after police raids on two consulting firms, Bain & Co. and Capvision, as well as a due diligence firm, Mintz Group.
Chinese authorities have not given a justification for the raids but have insisted that foreign companies must follow the law.
They import foreign chips worth over $300 billion every year.
Beijing is investing enormous sums of money in an effort to hasten semiconductor development and lessen the reliance on foreign technology.
However, Chinese foundries are unable to handle smartphones, artificial intelligence, or other cutting-edge applications.
They can only produce low-end chips used in automobiles and home appliances.
With divergent technology standards, the world might decouple or split into different realms as a result of the conflict, rendering computers, smartphones, and other devices from one region inoperable in others.
That might hinder innovation and drive up costs.
Due to disagreements over security, Beijing’s treatment of Hong Kong and Muslim ethnic minorities, territorial conflicts, and China’s massive trade deficits, US-Chinese relations are at their lowest point in decades.
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