Congress Calls for Cohesive Global Action
The Republican chairmen of two key House of Representatives panels, Michael McCaul and Mike Gallagher, are leading a call for President Biden's administration to unify international allies against China's "economic aggression." The appeal came in response to Beijing's effective ban on purchases of memory chips from Micron Technology (NASDAQ: MU).
China Strikes at US Tech Powerhouse
The Chinese administration has targeted Micron, America's largest memory chip maker. China's cyberspace regulator announced on May 21 that the company failed its network security review. As a result, key Chinese infrastructure operators are prohibited from purchasing from Micron. This move contributes to the continuing tension surrounding chip technology between Washington and Beijing.
G7 Leaders Take a Stand Against Economic Coercion
The Chinese decision came on the heels of an agreement among leaders of the G7 industrial democracies to initiate new strategies to counter Chinese economic coercion. Micron's projection of a subsequent revenue loss has further intensified concerns.
Preserving Market Share Amid International Tensions
In a letter to US Commerce Secretary Gina Raimondo, McCaul and Gallagher urged the administration to work closely with Japan and South Korea. They stressed the importance of ensuring that companies from these nations don't take advantage of the market vacuum caused by the ban, potentially undercutting Micron's position.
US Unyielding in the Face of Economic Aggression
On Saturday, Raimondo affirmed that the US would not accept China's actions and is working with allies to counteract such economic coercion. While the Chinese Embassy in Washington and a spokesperson for the Commerce Department are yet to respond to these developments, US officials remain undeterred.
A Call for Stricter Controls
McCaul and Gallagher urged for a stronger stance against China's actions. They proposed a more rigorous implementation of export control actions against Chinese companies potentially threatening US national security or foreign policy interests, such as Changxin Memory Technologies. They warned that failure to penalize China's adverse behavior would only encourage more of the same. Gallagher has reportedly called for trade curbs on Changxin Memory following Beijing's action against Micron.
