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The restrictions imposed this week by China’s cyberspace regulator against Micron Technology are the latest in a widening trade dispute between the world’s two largest economies. Photo: AFP

Top US Senator Chuck Schumer and Biden team work to address China’s Micron chips ban

  • China’s cyberspace regulator says Micron failed its network security review, and that it will block operators of key infrastructure from buying from the firm
  • Top Democrat Schumer called the ban a ‘troubling use of economic coercion’, and says he wants to make clear to Beijing that such behaviour is ‘unacceptable’

The US Senate’s top Democrat said on Tuesday that he and President Joe Biden’s administration were engaging allies and businesses to address China’s ban on sales of memory chips made by US-based Micron Technology.

The restrictions this week by China’s cyberspace regulator against Micron, the biggest US memory chip maker, 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 US,” 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 behaviour is unacceptable and unproductive.”

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China imposes restrictions on US chip maker Micron, escalating tech war

China imposes restrictions on US chip maker Micron, escalating tech war

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 US ability to face up to the Asian powerhouse on issues from technology to security and threats to Taiwan.

The Biden administration is troubled by Beijing’s recent actions and by raids targeting American firms, White House press secretary Karine Jean-Pierre told reporters. The White House is communicating its view to Beijing through the Commerce Department, she said.

“These actions are inconsistent with the PRC’s assertions that it is opening its markets and committed to a transparent regulator framework,” Jean-Pierre said.

Republican lawmaker Michael McCaul, the chairman of the US House of Representatives Foreign Affairs Committee, said in a statement 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 US 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.

US Senate Majority Leader Chuck Schumer is seen at the Capitol on May 17. Photo: AFP

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

China’s move against Micron, the biggest US memory chip maker, 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 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.

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