In probable retaliation, China probes Micron products

Beijing: In a tit for tat tech and trade action between China and the US, Micron Technology, one of Americas largest memory chip makers has become the latest victim, with Beijing announcing a cyber security probe into the US firm.

The Chinese action follows, and is an obvious retaliation against, the step by US allies in Asia and Europe of imposing new restrictions on the sale of key technology to Beijing, reported IANS.

The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, CNN quoted a statement issued by the watchdog as saying.

The move is aimed at "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security", it noted.

It came on the same day that Japan, a US ally, said it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the US and the Netherlands.

Washington and its allies have announced curbs on China's semiconductor industry, which strike at the heart of Beijing's bid to become a tech superpower, CNN reported.

Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security.

In October, the United States banned Chinese companies from buying advanced chips and chip-making equipment without a licence.

Shares in Micron sank 4.4 per cent on Wall Street on March 31 following the news, the biggest drop in more than three months.

Micron derives more than 10 per cent of its revenue from China, CNN reported.

In an earlier filing, the Idaho-based company had warned of such risks.

"The Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies," it said last week.