Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Top US senator, Biden administration work to address China's Micron chips ban

Published 05/23/2023, 12:33 PM
Updated 05/23/2023, 01:55 PM
© Reuters. FILE PHOTO: A smartphone with a displayed Micron logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/
MU
-

By Karen Freifeld and David Shepardson

WASHINGTON (Reuters) -The U.S. Senate's top Democrat said on Tuesday he and President Joe Biden's administration were engaging allies and businesses to address China's ban on sales of memory chips made by U.S.-based Micron Technology Inc (NASDAQ:MU).

The restrictions this week by China's cyberspace regulator against Micron, the biggest U.S. memory chipmaker, were the latest in a widening trade dispute between the world's two largest economies.

"The Chinese government's announced action against Micron is not based in fact and is a troubling use of economic coercion against the U.S.," Senate Majority Leader Chuck Schumer said. "I am working closely with the Biden administration to make clear to the Chinese government that this sort of behavior is unacceptable and unproductive."

Schumer added that "we are engaging with the broader business community as well as with our allies and partners to address the Chinese government's restrictions against Micron."

Earlier this month, Schumer launched a renewed effort to stave off competition from China, planning legislation to boost U.S. ability to face up to the Asian powerhouse on issues from technology to security and threats to Taiwan.

Republican lawmaker Michael McCaul, the chairman of the U.S. House of Representatives Foreign Affairs Committee, said in a statement to Reuters that "China's legal system is built to coerce any person or company under its authority. This is a mafia-like legal system bullying an American company. The U.S. and its partners and allies must stand together against this economic aggression."

The Chinese embassy in Washington did not immediately comment on the matter.

China's cyberspace regulator said on Sunday that Micron failed its network security review and that the regulator would block operators of key infrastructure from buying from the company.

Micron on Monday forecast the ban would dent revenue in the low-single to high-single digits in percentage terms.

© Reuters. FILE PHOTO: A smartphone with a displayed Micron logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/

China's move against Micron, the biggest U.S. memory chipmaker, was widely seen as retaliation for Washington's efforts to restrict Beijing's access to key technology.

It was announced just a day after the Group of Seven (G7) rich nations agreed they would look to "de-risk, not decouple" from China, and as Washington pressures its allies to join it in restricting chip equipment exports to China.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.