Beijing opened a new front in the escalating semiconductor battle between the U.S. and China, launching a cybersecurity review of imports from America’s largest memory-chip maker, Micron Technology.
The move risks further exacerbating tensions between the Biden administration and President Xi Jinping’s government, which have worsened in recent months over the security of Taiwan and the alleged spy balloon shot down over U.S. territory in February.
The Chinese government said in a statement Friday that it’s conducting the review to ensure the integrity of its information infrastructure supply chain, prevent network security risks and maintain national security. Shares of Micron, which counts on mainland China for about 11% of its sales, fell 4.4% in New York to $60.34. It was their worst one-day decline in more than three months.