China accuses US of 'economic coercion,' defends ban on US chipmaker Micron

Chinese government on Wednesday defended its ban on products from U.S. memory chipmaker Micron Technology Inc. in some computer systems after Washington expressed concern, ding to strains over technology and security. security review of Micron products was “conducted in accordance with law," said a foreign ministry spokesperson, Mao Ning. Cyberspace ministration of China on Sunday said Micron products have unspecified security risks but gave no details. It banned m from computers that handle sensitive information.

That came after Washington, Japan and Nerlands blocked Chinese access to technology to make vanced processor chips on security grounds at a time when ruling Communist Party is threatening to attack Taiwan and is more assertive toward its or Asian neighbors.

“China’s cybersecurity review does not target specific countries or regions,” Mao said. “We do not exclude technologies and products from any country.”

Companies on both sides have been buffeted by supply disruptions and lost sales revenue. Restrictions by Washington and its allies on access to chips and tools to make m hamper China’s efforts to develop its own chip industry. U.S. vendors have lost billions of dollars of potential sales to Chinese smartphone makers, chip foundries and or customers.

Mao complained United States has imposed restrictions on more than 1,200 Chinese companies on security grounds “without any factual basis.” She accused Washington of misusing national security as an excuse to “unreasonably suppress Chinese companies.” “This is economic coercion and is unacceptable,” Mao said. U.S. government is “engaging directly” with Beijing to “make our view clear” about Micron ban, State Department spokesperson Matw Miller said Monday.

“We have very serious concerns,” said Miller. Referring to People’s Republic of China, he said, “This action appears inconsistent with PRC’s assertions that it is open for business and committed to a transparent regulatory framework.”

Micron will cooperate with Chinese regulator and is evaluating ban’s impact, according to its chief financial officer, Mark Murphy. “We remain unclear as to what security concerns exist,” Murphy said on a JP Morgan technology industry conference call. “We’ve h no complaints from customers on security of our products.” Micron estimates it might lose sales equivalent to a single digit percentage of total revenue, but final figure depends on what customers and products are affected, Murphy said.

On Tuesday, Foreign Minister Qin Gang pressed his Dutch counterpart for access to chipmaking technology that has been blocked on security grounds. China needs a machine available only from a single Dutch company, ASML Holding NV, that uses ultraviolet light to etch microscopic circuits on next-generation chips. Without that, ruling party's efforts to develop chips for smartphones, artificial intelligence and or vanced applications are stalled.

“China has serious concerns about this,” Qin said. “We should work toger to jointly protect normal tre order between us” and "keep global industrial and supply chains stable.” Dutch minister, Wopke Hoekstra, said he “shared our national security concerns” and gave no indication his government's position changed.