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China Embraces Micron, Easing Tensions with Washington

Updated: Jan 8

In a significant development, China's commerce minister has expressed a warm welcome to Micron Technology Inc., a leading U.S. semiconductor company, indicating a thaw in relations between the two economic powerhouses.

Credit: Bloomberg

During a meeting on November 1, Commerce Minister Wang Wentao assured Micron's President and CEO, Sanjay Mehrotra, that China is committed to creating a favorable environment for foreign investment and offering service guarantees to foreign enterprises.

Wang stated, "We welcome Micron Technology to continue to take root in the Chinese market and achieve better development under the premise of complying with Chinese laws and regulations." This positive gesture comes after China's cyberspace regulator previously imposed restrictions on Micron, citing network security concerns and preventing Chinese operators from purchasing from the American memory chipmaker.

The move against Micron was widely seen as a retaliatory measure in response to Washington's efforts to limit China's access to crucial technology. However, the recent meeting between Wang and Mehrotra aligns with the improving relations between the United States and China, as both countries work towards organising a meeting between President Joe Biden and Chinese President Xi Jinping later this month.

Micron's presence and expansion in the Chinese market hold significant implications for the semiconductor industry. As tensions ease, this development opens up opportunities for Micron to deepen its footprint in China and contribute to the country's technological advancement.

By embracing Micron, China is signaling its willingness to collaborate and foster a more cooperative relationship with U.S. companies in the tech sector. This positive step could have far-reaching effects on the global semiconductor market and contribute to the stability and growth of the industry.

  • China's commerce minister welcomes Micron Technology's deeper involvement in the Chinese market.

  • The gesture indicates a thaw in relations between China and the United States.

  • Micron had faced restrictions in China due to network security concerns.


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