China warns products of US company specializing in chips

China announced that Micron Technology’s U.S. products failed to pass its internal cybersecurity review, becoming a new Chinese move against U.S. industries.

In a statement, Beijing warned key infrastructure operators not to buy Micron products sold in China, saying it found them to have relatively serious cybersecurity risks.

According to the statement issued by China’s Cyberspace Administration, these components have caused significant security risks to our critical information infrastructure supply chain, which would affect national security.

The technology sector has become a key national security battleground between the world’s two largest economies, with Washington already blacklisting Chinese technology companies, halting the flow of sophisticated processors and banning its citizens from providing certain aid to the Chinese chip industry, the U.S. Commerce Department said in a statement that Beijing’s conclusion “It has no basis in fact, and Washington will continue to try to reduce industry turmoil with its allies.

Shares of Micron’s two biggest industry competitors, Samsung Electronics and SK Hynix, rose in Seoul. Shares of Chinese chip companies, including sector leaders Semiconductor International Corp and Hua Hong Semiconductor, rose more than 3% in Hong Kong.