China bans chipmaker Micron from key infrastructure projects as tech row with US escalates
Beijing has stepped up its feud with Washington after announcing products made by US memory chip giant Micron Technology pose a national security risk.
China‘s cyberspace regulator said on Sunday that following a review it found Micron products have unspecified “serious network security risks” that are a hazard to the country’s information infrastructure.
It told users of computer equipment to stop buying products from the US company.
“The review found that Micron’s products have serious network security risks, which pose significant security risks to China’s critical information infrastructure supply chain, affecting China’s national security,” the Cyberspace Administration of China said on its website.
CAC’s statement did not provide further details of the risk or which Micron products were deemed a threat.
Micron said it had received the CAC’s notice of the conclusion of its review of the company’s products sold in China, and looked “forward to continuing to engage in discussions with Chinese authorities”.
The US, Europe and Japan are reducing China’s access to advanced chipmaking and other technology they believe could be used in weapons.
While they have warned of unspecified consequences, Chinese officials appear to be struggling to find ways to retaliate without hurting the country’s own smartphone producers and other industries.
Micron makes DRAM and NAND flash memory chips and competes with South Korea’s Samsung Electronics Co Ltd and SK Hynix Inc, as well as Japan’s Kioxia, a unit of Toshiba Corp.
Impact on Micron will be ‘limited’
The company would experience limited impact by the latest announcement, according to Jefferies analysts, as its major customers in China are consumer electronics firms such as smartphone and computer manufacturers, not infrastructure suppliers.
“Since Micron’s DRAM and NAND products are much less in servers, we believe most of its revenue in China is not generated from telcos and the government. Therefore, the ultimate impact on Micron will be quite limited,” they said.
However, the company generated $5.2bn (£4.1bn) of revenue from China and Hong Kong last year, around 16% of its total revenue.
Read more: The awkward multi-polar world of the West versus ever-wealthy developing countries
An official review of Micron under China’s increasingly stringent information security laws was announced last month, hours after Japan joined Washington in imposing restrictions on Chinese access to technology to make processor chips on security grounds.
Last week, Micron announced a plan to invest up to 500 billion yen (£2.9bn) in Japan in extreme ultraviolet technology, becoming the first chipmaker to bring advanced chip manufacturing technology to the country that is now seeking to reinvigorate its chip sector.
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China calls the G7 a ‘clique’
The timing of the CAC’s announcement was significant, as US President Joe Biden said on Sunday that G7 nations had agreed to “de-risk and diversify our relationship with China”. They also agreed to establish an initiative to counter economic “coercion” during the summit in Hiroshima, Japan, over the weekend.
Meanwhile, British Prime Minister Rishi Sunak said in his address at the summit that China poses the biggest challenge in the world to global security.
He said China was the “only country with both the means and intent to reshape the world order”.
US president-elect Donald Trump has suggested Israel and Hamas could agree a Gaza ceasefire by the end of the week.
Talks between Israeli and Hamas representatives resumed in the Qatari capital Doha yesterday, after US President Joe Biden indicated a deal to stop the fighting was “on the brink” on Monday.
A draft agreement has been sent to both sides. It includes provisions for the release of hostages and a phased Israeli troop withdrawal from Gaza.
Qatar says Israel and Hamas are at their “closest point” yet to a ceasefire deal.
Two Hamas officials said the group has accepted the draft agreement, with Israel still considering the deal.
An Israeli official said a deal is close but “we are not there” yet.
More than 46,500 Palestinians have been killed in Gaza since Israel launched its ground offensive in the aftermath of the 7 October attacks, according to the territory’s Hamas-run health ministry.
Read more:
What’s in the proposed deal?
Palestinians inspect the site of an Israeli strike on beachfront cafe in Deir al Balah. Pic: Reuters
Biden hails possibility of agreement
President Biden said it would include a hostage release deal and a “surge” of aid to Palestinians, in his final foreign policy speech as president.
“So many innocent people have been killed, so many communities have been destroyed. Palestinian people deserve peace,” he said.
“The deal would free the hostages, halt the fighting, provide security to Israel, and allow us to significantly surge humanitarian assistance to the Palestinians who suffered terribly in this war that Hamas started.”
Qatari mediators have sent Israel and Hamas a draft proposal for an agreement to halt the fighting.
Analysis:
Deal might be close, but there are many unanswered questions
Pic: Reuters
Trump: ‘We’re very close’
President-elect Donald Trump has also discussed a possible peace deal during a phone interview with the Newsmax channel.
“We’re very close to getting it done and they have to get it done,” he said.
“If they don’t get it done, there’s going to be a lot of trouble out there, a lot of trouble, like they have never seen before.
“And they will get it done. And I understand there’s been a handshake and they’re getting it finished and maybe by the end of the week. But it has to take place, it has to take place.”
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Donald Trump’s inauguration 2.0
Pic: AP
Israeli official: Former Hamas leader held up deal
Speaking on Tuesday as negotiations resumed in Qatar, an anonymous Israeli official said that an agreement was “close, but we are not there”.
They accused Hamas of previously “dictating, not negotiating” but said this has changed in the last few weeks.
“Yahya Sinwar was the main obstacle for a deal,” they added.
Sinwar, believed to be the mastermind of the 7 October attacks, led Hamas following the assassination of his predecessor but was himself killed in October last year.
Under Sinwar, the Israeli official claimed, Hamas was “not in a rush” to bring a hostage deal but this has changed since his death and since the IDF “started to dismantle the Shia axis”.
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Biden: ‘Never, never, never, ever give up’
Iran ‘weaker than it’s been in decades’
Yesterday, President Biden also hailed Washington’s support for Israel during two Iranian attacks in 2024.
“All told, Iran is weaker than it’s been in decades,” the president said.
Mr Biden claimed America’s adversaries were weaker than when he took office four years ago and that the US was “winning the worldwide competition”.
“Compared to four years ago, America is stronger, our alliances are stronger, our adversaries and competitors are
weaker,” he said.
“We have not gone to war to make these things happen.”
The US president is expected to give a farewell address on Wednesday.
A draft ceasefire deal on the table between Israel and Hamas would see 33 hostages set free and a phased withdrawal of IDF forces from parts of Gaza.
President Joe Biden said an agreement to stop the fighting was “on the brink” and high level negotiations between the two sides resumed in Qatar on Tuesday.
The deal would see a number of things happen in a first stage, with negotiations for the second stage beginning in the third week of the ceasefire.
It would also allow a surge in humanitarian aid into Gaza, which has been devastated by more than a year of war.
Details of what the draft proposal entails have been emerging on Tuesday, reported by Israeli and Palestinian officials.
Relatives and supporters of Israeli hostages hold photos of their loved ones during a protest on 8 January. Pic: AP
Hostages to be returned
In the first stage of the potential ceasefire, 33 hostages would be set free.
These include women (including female soldiers), children, men over the age of 50, wounded and sick.
Israel believes most of these hostages are alive but there has not been any official confirmation from Hamas.
In return for the release of the hostages, Israel would free more than 1,000 Palestinian prisoners and detainees.
People serving long sentences for deadly attacks would be included in this but Hamas fighters who took part in the 7 October attack would not be released.
An arrangement to prevent Palestinian “terrorists” from going back to the West Bank would be included in the deal, an anonymous Israeli official said.
Read more:
A timeline of events since the 7 October attacks
The hostages who still haven’t returned home
Smoke billows as buildings lie in ruin in Beit Hanoun in Gaza. Pic: Reuters
Phased Israeli withdrawal from Gaza
The agreement also includes a phased withdrawal of Israeli forces from Gaza, with IDF troops remaining in the border perimeter to defend Israeli border towns and villages.
Security arrangements would be implemented at the Philadelphi corridor – a narrow strip of land that runs along the border between Egypt and Gaza – with Israel withdrawing from parts of it after the first few days of the deal.
The Rafah Crossing between Egypt and Gaza would start to work gradually to allow the crossing of people who are sick and other humanitarian cases out of Gaza for treatment.
Unarmed North Gaza residents would be allowed to return to their homes, with a mechanism introduced to ensure no weapons are moved there.
“We will not leave the Gaza Strip until all our hostages are back home,” the Israeli official said.
What will happen to Gaza in the future?
There is less detail about the future of Gaza – from how it will be governed, to any guarantees that this agreement will bring a permanent end to the war.
“The only thing that can answer for now is that we are ready for a ceasefire,” the Israeli official said.
“This is a long ceasefire and the deal that is being discussed right now is for a long one. There is a big price for releasing the hostages and we are ready to pay this price.”
The international community has said Gaza must be run by Palestinians, but there has not been a consensus about how this should be done – and the draft ceasefire agreement does not seem to address this either.
In the past, Israel has said it will not end the war leaving Hamas in power. It also previously rejected the possibility of the Palestinian Authority, which exercises limited governing powers in the West Bank, from taking over the administration of Gaza.
Since the beginning of its military campaign in Gaza, Israel has also said it would retain security control over the territory after the fighting ends.
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