Official slams China ban as 'economic coercion in response to US microchip export ban
ALBAWABA – The United States (US) Commerce Secretary Gina Raimondo announced on Saturday that the US “won’t tolerate” the China ban on the purchase and importation of American memory chips made by Micron Technology.
According to Raimondo, China’s ban is considered a form of "economic coercion," Reuters reported.
China announced the ban on Micron memory chips on May 21, in an apparent response to the US’ effective bans and sanctions on China.
China's cyberspace regulator said that Micron, the biggest US memory chip maker, had failed its network security review.
The ban blocks operators of key infrastructure from buying from the company, according to Reuters.
The US effectively prohibited the exportation of advanced US microchip technologies to China for the better part of a year now. But is looking to make exceptions for South Korean companies operating in China.
Raimondo made the statement on the sidelines of a news conference after a meeting of trade ministers during the US-led Indo-Pacific Economic Framework talks.
The US "firmly opposes" China's actions against Micron, she said.
These "target a single US company without any basis in fact, and we see it as plain and simple economic coercion and we won't tolerate it, nor do we think it will be successful."
The move came a day after leaders of the G7 industrial democracies agreed to new initiatives to push back against economic coercion by China, according to Raimondo.
Last October, the US banned Chinese companies from buying advanced chips and chip-making equipment without licensing.
As of February this year, President Joe Biden’s Administration has also been working on more restrictions on outbound US investments to China, especially in tech and Artificial Intelligence (AI), according to The New York Times.
