Micron ban marks Beijing’s first counterpunch

In 2019, the Trump administration cut off Huawei, one of China’s most successful tech companies, from semiconductor lifeblood. Last year, the Biden administration piled on sweeping export controls for advanced chip-making equipment, essentially limiting China’s semiconductor manufacturing activities to 20nm and older nodes. Hundreds of Chinese companies are on the so-called Entity List, requiring American businesses to obtain a license from the US government to do business with them.

China’s response to these US sanctions has been remarkably mild so far. Officials denounced them in no uncertain terms publicly and probably in even harsher terms behind closed doors. They’ve also harassed US tech companies in China by increasing regulatory requirements and slow bureaucratic procedures, and even conducted some raids, but outright retaliatory measures haven’t materialized.