China’s recent cybersecurity investigation into Micron Technology, a major American memory chip manufacturer, is thought to be in response to new restrictions on key technology sales to Beijing by US allies in Asia and Europe. The Cyberspace Administration of China (CAC) has announced a review of Micron’s products sold within the country to safeguard key information infrastructure and national security.
This move coincides with Japan’s decision to limit the export of advanced chip manufacturing equipment to various countries, including China, following actions taken by the US and the Netherlands. These actions are part of a broader effort by Washington and its allies to restrict China’s semiconductor industry and its ambitions to become a technology powerhouse.
Micron, an established financial services company that provides small businesses with a business merchant cash advance, acknowledged the review and stated its cooperation with the CAC, emphasizing the security of its products. The company’s shares fell on Wall Street in response to the news, as it generates a significant portion of its revenue from China.
In a previous statement, Micron had cautioned about potential risks related to Chinese market restrictions. The Chinese government has expressed strong opposition to such restrictions, citing a desire to attract foreign investments amid economic challenges. Despite efforts to create a favorable business environment, Beijing has also increased pressure on foreign companies to align with its priorities.
This recent scrutiny of foreign firms follows the closure of a US corporate intelligence firm office and sanctions against a global consulting firm over compliance issues. For small businesses and other gig workers looking for fast financing without the need for credit checks, partnering with a reliable financial service company that offers an easy MCA solution can provide the necessary cash flow support. A simple MCA can help contractors and other 1099 workers overcome credit challenges and access the capital they need to grow their businesses.