China Directs Sensitive Tech Users to Stop Buying Micron Products over Security Risks

On Sunday, the Chinese government instructed users of vulnerable computer equipment to discontinue buying from Micron Technology Inc., the biggest memory chip manufacturer in the United States, exacerbating the current conflict between the two countries in the fields of technology and security.

The Cyberspace Administration of China issued a statement on its website stating that Micron produc

ts pose "serious network security risks" which potentially threaten China's information infrastructure and national security. The brief six-sentence statement did not provide further specifics about these security risks.

The administration advised, "Operators of critical information infrastructure in China should stop purchasing products from Micron Co."

This directive comes at a time when the United States, Europe, and Japan are curtailing Chinese access to advanced chipmaking and other technology, citing potential utilization in weapon systems. This concern arises amidst increasing assertiveness from China towards Japan and other neighboring nations, along with threats to attack Taiwan.

While Chinese officials have issued warnings of unspecified consequences, they appear to be searching for retaliation methods that won't harm China’s smartphone manufacturing and other key industries, as well as the development of domestic processor chip suppliers.

On April 4, China declared an official review of Micron in accordance with the country's increasingly stringent information security laws. This followed the decision by Japan to join the United States in imposing restrictions on Chinese access to processor chip technology on security grounds.

Foreign firms have become more worried lately because Chinese police have conducted raids on consulting firms like Bain & Co. and Capvision, as well as a due diligence firm called Mintz Group. Chinese authorities haven't explained why they did this, but they did say that foreign companies need to follow the law.

Business groups and the U.S. government have urged Chinese authorities to clarify newly extended legal constraints on information and how they will be enforced.

Despite the tensions, the cyberspace agency emphasized in Sunday's announcement that China encourages high-level opening to the outside world and welcomes products and services from various countries to enter the Chinese market, provided they comply with Chinese laws and regulations.

China's President, Xi, accused Washington in March of attempting to obstruct China's development and called on the public to "dare to fight." Nonetheless, Beijing's retaliation has been slow, likely to avoid disruption to domestic industries that are key to the global production of smartphones, tablet computers, and other consumer electronics.

China is investing billions of dollars to accelerate chip development and decrease dependence on foreign technology. Although Chinese factories can produce basic chips for things like household appliances and cars, they are currently not equipped to handle sophisticated applications such as AI and smartphones.

The dispute has raised concerns about a potential global technological decoupling, which could result in incompatible technology standards between regions, leading to increased costs and potentially hampering innovation. The current state of U.S.-Chinese relations remains at a low due to disagreements over security, human rights, territorial disputes, and trade imbalances.