For some time now for some time now, China has been under the fire of American sanctions in the field of semiconductors. In order to prevent, or slow down the development of China in this field, the West prevents the import of chips, software and even machines for the production of electronic chips. For its part, the Middle Kingdom sanctions in turn. During the G7 summit, China decided to prohibit its companies from buying any Micron chips.
Micron now under the fire of Chinese sanctions!
We learn that the CAC (Cyberspace Authority) has simply decided to prohibit Chinese companies to buy Micron chips. The authority justifies its ban by the fact that American chips represent “significant security risks”. These would then impact the governmental banking sectors as well as telecom providers. But according to Reuters the CWC has not provided any details about the risks posed by the US company’s products. Clearly, all this indicates that the decision was made for political purposes and is not based on any objective results.
As far as Micron is concerned, the company could clearly lose some feathers since the country represents a significant part of its turnover. Indeed, the brand generated $5.2 billion of its sales in China and Hong Kong, which is about 16% of its turnover. Nevertheless, the American company remains open to dialogue with the Chinese authorities.
For the time being, Sino-American relations are becoming more strained. It remains to be seen how far this will go.
