15.1 C
Wednesday, May 15, 2024
HomeTech InsidesMicron Technology Inc. (NASDAQ: MU) Become "Major Concern" For Other Businesses: U.S....

Micron Technology Inc. (NASDAQ: MU) Become “Major Concern” For Other Businesses: U.S. Business Group Says


Micron Technology Inc. (NASDAQ: MU) surges over 2.32% to $59.54 in pre trading session on Wednesday as a prominent US business lobbying group said on Wednesday that Beijing’s investigation of US-based chipmaker Micron Technology Inc. was a “major concern” for other businesses doing business 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 investigation suggests that other companies or industries could be singled out by Beijing based on vague suspicions, according to Lester Ross, chair of the American Chamber of Commerce in China’s policy committee.

“It’s a major concern because China lacks transparency in many conventions of law and policy, including this one,” Ross said.

Late in March, China’s cyberspace authority said that it will conduct a cybersecurity evaluation of Micron Technology products in order to “prevent hidden risks and safeguard national security.”

Ross made his remarks during a media roundtable following the release of the Beijing-based chamber’s poll on business sentiment, which gathered answers from 109 American firms operating in China between April 18 and 20, this year.

The poll results revealed that respondents were more enthusiastic about the Chinese business environment in late 2022, before the government eliminated COVID-19 limitations.

However, more businesses are afraid that deteriorating US-China ties would have an impact on operations. Approximately 87% of respondents were at least slightly negative about the two nations’ bilateral relationship, a 14-point increase over the previous survey.

According to Michael Hart, president of AmCham China, the study found that American firms believe the overall investment environment in China is becoming less predictable than in the past.

Micron has stated that it will comply with the investigation and that its shipments and activities in China will continue as usual. The study comes as Washington prepares to impose new export curbs on China’s semiconductor industry in 2022.

Today's Top Stocks - Free List!

Latest stories