China’s cyber regulator said on Sunday that products made by U.S. memory chip maker Micron Technology had failed a network security review and that it would bar operators of key infrastructure from buying from the firm.
Under China’s broad definition of critical information infrastructure, this could include sectors from transportation to finance.
“The review found that Micron’s products have serious network security risks that pose significant security risks to China’s critical information infrastructure supply chain and affect China’s national security,” China’s Cyberspace Administration (CAC) said in a statement.
Micron said it had received the CAC’s notice of closure of its review of the company’s products sold in China and “looks forward to continuing discussions with the Chinese authorities.”
The CAC did not provide details on what risks it found or what Micron products would be affected. China announced its review of Micron products in late March. The company said at the time that it was cooperating and that its business operations in China were normal.
The governments of the United States and China are at loggerheads over chip technology. Washington has imposed a series of export controls on chip-making technology to China and has moved to prevent Micron’s rival Yangtze Memory Technologies from buying certain American components.
Micron gets about 10% of its revenue from China, but it’s unclear whether the decision will affect the company’s sales to non-Chinese customers in the country. Most of Micron’s products flowing into China are bought by non-Chinese companies for use in products made there, according to analysts.
In September 2021, China introduced rules aimed at protecting critical information infrastructure, requiring their operators to adhere to stricter requirements in areas such as data security.
Beijing has broadly defined industries it considers “critical”, such as public communications and transport, but has not specified exactly what type of company or business it will cover.
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