Tensions have continued to heat up in recent weeks: Now the US-China conflict is entering the next round. The U.S. chip manufacturer Micron is being put in its place by China's authorities.
Beijing - The trade dispute between the United States and China is entering a new round. This time, the US memory chip manufacturer Micron is in the spotlight. The Chinese Cybersecurity Administration (CAC) banned operators of infrastructure facilities from using the US company's chips on Sunday evening. The products posed massive security risks, it said. The CAC did not give details.
In the United States, the decision was met with sharp criticism. "We clearly reject unfounded restrictions," the U.S. Department of Commerce said. This approach is not in line with China's assurances to open markets and adhere to transparent rules.
Trade dispute: Tensions between Washington and Beijing rise again
On the stock market, the prices of US chip companies fell. Chinese and South Korean manufacturers, on the other hand, received a boost. However, the price changes were kept within limits. Experts do not expect the Chinese government's decision to trigger major upheavals in the market.
Tensions between the US and China have risen again in recent months. Micron is the first U.S. chip manufacturer to be in the crosshairs of the Chinese government. Previously, the U.S. had imposed export restrictions on chip machines and other parts to prevent U.S. products from being used in China's defense industry. The U.S. Department of Commerce has now announced that it will speak directly with the authorities in Beijing. "We will also consult with key allies and ensure that we work closely together to prevent disruptions in the memory chip market that could be triggered by China's decisions."
The US chip manufacturer Micron is banned by China's authorities. © David Chang / dpa
In industry circles, it was said that the action against Micron did not come as a complete surprise. Chinese state media spoke of an isolated case that would have to be considered against the background of national security and not geopolitical decisions. However, prominent Chinese commentator Hu Xijin pointed to a political aspect: the government in Washington is encouraging U.S. companies to do things that affect China's security. That's why she suspects Chinese companies of doing the same. "The whole world should beware of the US," tweeted the former editor-in-chief of the state-run Global Times newspaper.
Effects for Micron itself probably manageable
Among other things, the Chinese government has classified the communications and transport industries as "critical", but has not made it clear exactly which companies are involved. Micron mainly manufactures modern memory chips, which are used in computers or smartphones, among other things.
However, the direct impact on Micron is likely to be manageable because the server chip business plays a comparatively small role, the experts at Jefferies wrote. It can be assumed that telecommunications companies and public authorities are not among the main customers. The experts at Bernstein put the possible decline in sales at two percent.
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Tensions between China and the United States have been running hot for some time. One reason: the island state of Taiwan, which sees itself as independent and would very much like to remain so - and China on the other side. Meanwhile, Chinese ruler Xi Jinping makes no secret of his intention to take Taiwan - if necessary militarily. (REUTERS, lf)
