US Will Not Tolerate China's Micron Chips Ban

The United States will not tolerate China's recent decision to ban chips by Micron Technology in some critical sectors. The authorities are now working closely with allies to address this issue, described as "economic coercion."

CHINA-US-POLITICS-TECH-SEMICONDUCTORS-MICRON — A view of a building where the facilities of US semiconductor giant Micron is located in Shanghai on May 22, 2023. US semiconductor giant Micron has failed a national security review, China's cybersecurity watchdog said on May 21, telling operators of "critical information infrastructure" to stop buying its products. HECTOR RETAMAL/AFP via Getty Images

(Photo: HECTOR RETAMAL/AFP via Getty Images) A view of a building where the facilities of US semiconductor giant Micron are located in Shanghai on May 22, 2023. US semiconductor giant Micron has failed a national security review, China's cybersecurity watchdog said on May 21, telling operators of "critical information infrastructure" to stop buying its products.

US' Response to China's Micron Chips Ban

During a news conference after a meeting of trade ministers in the country, Commerce Secretary Gina Raimondo stated the United States would not tolerate the recent decision by Chinese authorities to ban developed chips by Micron Technology. Bloomberg reported that she described the current administration's reaction using her sharpest language.

China's recent decision to ban companies from purchasing Micron-developed products is a reflection of targeting a company from the United States without any basis. "In fact, we see it as plain and simple economic coercion, and we won't tolerate it, nor do we think it will be successful." It remains unclear what steps the Us might take.

In response to this, Raimondo stated that the administration is consistently engaging with their partners and allies on addressing this specific issue, along with other challenges related to China's nonmarket practices. The administration will not tolerate this decision and thinks that it will not be successful.

Previous Conducted Meetings

This statement comes after previous meetings conducted by the administration. According to a report from Reuters, Raimondo also raised this concern during a meeting on Thursday with China's Commerce Minister Wang Wentao in Washington. This was also followed by a similar meeting on Friday with the US Trade Representative Katherine Tai.

The conducted meetings are part of the United States's effort to restore high-level discussion with Beijing, which includes potential visits to China by Treasury Secretary Janet Yellen and possible meetings between US President Joe Biden and China President Xi Jinping.

As per Deputy Trade Representative Sarah Bianchi that we will get to see ongoing dialogue regarding this issue. She stated, "How difficult those conversations will be or what they'll lead to, I don't know, but the conversation in and of itself is actually quite important."

Also read : Micron Becomes First Foreign Chip Maker to Put Under Cybersecurity Review by China

Companies were recently banned by the Cyberspace Administration of China from purchasing Micron products after finding significant security risks to critical information infrastructure. Including state-owned banks and telecom operators.

This decision will have a huge impact as Micron Technology is the largest memory manufacturer in the US, which accounts for 10% of its annual revenue from the Chinese market. Micron also became the first foreign chip maker to be put under cybersecurity review by China, followed by the existing trade tensions between the two countries.

Micron responded to the recent ban by saying that they are standing by their products and continue to communicate and cooperate with regulators from China. "The Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies," the company stated when the review was announced.