The Chip War
According to Iran Gate, China has banned one of the major American chip manufacturers, Micron Technology, from large infrastructure projects in the country because it believes that the company’s products pose a serious threat to network security.
This is China’s first decision to ban an American technology manufacturer and follows the restrictions set by the US Department of Commerce last fall, under which the US government introduced a set of new laws that require manufacturers to obtain export licenses from the US Department of Commerce for the supply of semiconductor equipment and chip production equipment to Chinese companies. Similar laws and strict restrictions on the export of equipment and technology to Beijing have also been imposed by the Netherlands and Japan.
This technology company will suffer significant damage due to this cessation of its activities, as Micron earns 25% of its revenue from the Chinese and Hong Kong markets, according to the Financial Times report.
Beijing has halted the activities of the American company Micron, citing serious cyber security risks and the need to investigate the products sold in the country, according to the National Cyber Security Regulatory Authority. As a result, key IT infrastructure operators are required to stop purchasing Micron products.
In March, the Chinese government publicly announced its initiative to collaborate with Micron, the largest memory manufacturer in the United States, in order to support its information technology supply chain and national security.
Some analysts, citing English economic newspapers, say that in the escalating trade tensions between the United States and China, Micron is likely to be the first target in what is now called the chip war, as its technology can easily be replaced by its South Korean competitors such as Samsung and SK Hynix.
The Cyberspace Administration of China (CAC) announced on Monday a ban that indicates investigations have shown significant security risks to China’s important information infrastructure supply chain posed by products from Micron, impacting China’s national security. However, Chinese authorities did not provide details on the specific risks or which Micron products pose these risks.
According to Micron, the ban on using the company’s chips only applies to Chinese companies, so foreign companies operating in China will not be affected. Micron also stated that it will continue to negotiate with Chinese authorities.
The US Department of Commerce has also criticized the Chinese officials’ statements about trade freedom and transparency, calling this action contradicting. China’s decision was announced while the G7 leaders strongly criticized the human rights situation in China, its economic policies, and the increasing military presence of Beijing in the waters of East and Southeast Asia at the end of their meeting in Hiroshima, Japan.
Despite signs of a desire for improvement and warming of relations on the sidelines of the G7 summit, the presence of the United States could potentially escalate tensions between Beijing and Washington.
US President Joe Biden, in the latest press conference at the summit, expressed expectations for improved relations with China in the short term. However, he emphasized that there has been no change in the US’s stance on Taiwan’s independence and China’s policies. He also mentioned the issue of Russia, stating that all parties should resolve issues through peaceful means.
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