Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Micron case causing concern for US companies in China, business chamber says

Published 04/26/2023, 05:05 AM
Updated 04/26/2023, 05:11 AM
© Reuters. FILE PHOTO: The logo of U.S. memory chip maker MicronTechnology is pictured at their booth at an industrial fair in Frankfurt, Germany,  July 14, 2015. REUTERS/Kai Pfaffenbach/File Photo

SHANGHAI (Reuters) - Leaders from a top U.S. business lobbying group said on Wednesday that Beijing's probe against U.S.-based chipmaker Micron Technology Inc (NASDAQ:MU) marked a "major concern" for other companies operating in the country.

In the absence of data or "real evidence showing that Micron's products provided or stood as an example of a particular vulnerability to China," the probe suggests other companies or industries could be singled by Beijing based on unclear suspicions, said Lester Ross, chair of the policy committee at the American Chamber of Commerce in China (AmCham China).

"It is a major concern because China lacks transparency in many conventions of law and policy, and this is one," Ross said.

Late in March, China's cyberspace regulator said it would conduct a cybersecurity review of products sold by Micron Technology to "prevent hidden risks and safeguard national security."

Ross' comments came during a media roundtable after the release of the Beijing-based chamber's survey on business sentiment, which collected responses from 109 American companies operating in China over the period of April 18-20 of this year.

The survey results showed respondents were more optimistic about the business outlook in China compared to the previous survey conducted in late 2022, before the government lifted COVID-19 controls.

However, more companies are concerned that worsening U.S.-China relations will affect operations. About 87% of respondents stated they were at least slightly pessimistic about the two countries' bilateral relationship, up 14 percentage points from the previous poll.

© Reuters. FILE PHOTO: The logo of U.S. memory chip maker MicronTechnology is pictured at their booth at an industrial fair in Frankfurt, Germany,  July 14, 2015. REUTERS/Kai Pfaffenbach/File Photo

Michael Hart, president of AmCham China, said the survey showed that American companies feel the overall environment for investment in China is becoming less predictable than before.

Micron has said it would cooperate with the probe and that its shipments and operations in China remain unaffected. The review comes amid a wave of export restrictions from Washington in 2022 that targeted China's chip sector.

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.