China declares US memory chip giant Micron Technology's products pose a threat to national security.

In a significant move, China's cyberspace regulator declared on Sunday that the largest American manufacturer of memory chips presents "grave network security concerns." Consequently, the company's products will be prohibited from utilization in vital infrastructure initiatives within the world's second-largest economy. This marks China's initial substantial action taken against a US-based chip maker, further escalating tensions between Beijing and Washington.

According to a statement issued by the Cyberspace Administration of China (CAC), their review has identified significant network security risks associated with Micron's products. These risks are deemed to pose a considerable threat to China's critical information infrastructure supply chain, thereby impacting national security. The CAC, however, did not provide specific details regarding the identified risks or the specific Micron products affected.

A spokesperson from Micron confirmed that they have received the notice from the CAC, subsequent to the review conducted on Micron products sold in China. The company is currently evaluating the conclusion and considering their next course of action. They expressed their willingness to maintain ongoing discussions with Chinese authorities.

In response to China's actions, the United States declared its intention to collaborate with its allies in addressing the perceived distortions in the memory chip market caused by China. The US Commerce Department spokesperson voiced strong opposition to restrictions lacking factual basis. Furthermore, the spokesperson stated that such actions, alongside recent targeting of American companies and raids, contradict China's claims of market opening and commitment to transparent regulatory practices.

The announcement by the Cyberspace Administration of China (CAC) coincided with a statement from the G7 leaders, issued during a meeting held in Japan, which criticized China's human rights record, economic policies, and increased military presence in the East and South China Seas.

During the G7 summit, held in Hiroshima, US President Joe Biden highlighted that the member nations were seeking to "de-risk and diversify" their relationship with China. As part of this objective, steps are being taken to diversify supply chains, as mentioned by President Biden. Micron's CEO, Sanjay Mehrotra, was present at the summit, representing a group of business leaders.

In a separate development, Micron announced last week its plans to invest approximately 500 billion yen ($3.6 billion; £2.9 billion) in technology development in Japan.