MU - Chinese probe into Micron seen as 'major concern' US lobbying group says

2023-04-26 07:39:48 ET

China's probe into the sale of products by Micron Technology ( NASDAQ: MU ) in its country is a "major concern" not only for the memory maker, but other companies as well, a top business lobbying group said on Wednesday.

At a media roundtable, the American Chamber of Commerce in China said the lack of "real evidence" showing Micron ( MU ) caused a vulnerability in China may mean that other companies or industries could also be targeted, according to Reuters .

"It is a major concern because China lacks transparency in many conventions of law and policy, and this is one," Lester Ross, the lobbying group's chair, was quoted as saying.

Micron ( MU ) shares rose more than 2% in pre-market trading on Wednesday.

Micron ( MU ), which has previously said it will cooperate with the probe, did not immediately respond to a request for comment from Seeking Alpha.

Last month, the Cyberspace Administration of China said it launched a review of Micron ( MU ) products sold in the country. Among the issues the Chinese officials are reviewing are information infrastructure and hidden security risks involving China's massive technology supply chain operations.

The move comes in the wake of recent U.S. actions that include clamping down on the selling of certain semiconductor technologies to China on the grounds these products could be used for corporate or governmental espionage against the U.S.

Earlier this week, it was reported that the U.S. government has asked South Korea to not have its chipmakers fill the gap if China bans Micron's ( MU ) products.

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