China forbids the purchase of Micron semiconductors as tensions with the US increase


China has barred its biggest state-run chip buyer from purchasing American-made components, curbing purchases of US-made chips from Micron Technology Inc and intensifying an escalating trade row between the two countries.

The move by the China Integrated Circuit Industry Investment Fund, Beijing’s main chip investment arm, is seen as a way for the Chinese government to put economic pressure on the US amid the ongoing trade standoff.

By banning purchases from Micron, the world’s largest memory-chip maker, China seeks to advance the development of its own chip industry and reduce its dependence on US imports. The action could also increase prices for computer and smartphone makers in China, who rely largely on imported chips from Micron and other US suppliers.