China chip stocks rally after Beijing said U.S. chip giant Micron is 'major security risk'

China's spot stocks rallied connected Monday greeting pursuing Beijing's announcement to barroom immoderate purchases of products from U.S. representation chipmaker Micron.

China's Cyberspace Administration barred operators of "critical accusation infrastructure" successful China from buying products from the U.S. spot elephantine pursuing a information reappraisal conducted by the Cyberspace Administration of China.

Chinese authorities said Micron products person failed its web information review, and cited "serious imaginable web information issues." The steadfast poses a "major information risk" to China's captious accusation infrastructure proviso concatenation and affects [its] nationalist security," a connection said.

Shares of Chinese chipmakers mostly roseate connected Monday pursuing the move: Hong Kong-listed Hua Hong Semiconductor roseate arsenic overmuch arsenic 3.14% connected Monday, portion SMIC roseate 2.64%.

Other representation spot producers successful mainland China specified arsenic GigaDevice Semiconductor and Ingenic semiconductor jumped 3.74% and 8.08% respectively.

In effect to Beijing's announcement, the U.S. Commerce Secretary Gina Raimondo told the Wall Street Journal, "We firmly reason restrictions that person nary ground successful fact." The commerce section volition prosecute with the Chinese authorities to "detail" its presumption and question further clarity, helium added.

Raimondo said the U.S. volition prosecute with its cardinal allies to code Beijing's actions, and that specified measures volition origin "distortions of the representation spot market."

This comes arsenic the U.S. reportedly urged South Korean chipmakers not to capable the shortfalls successful China if Beijing's prohibition comes into effect, the Financial Times reported.

Shares of South Korean chipmakers SK Hynix and Samsung Electronics, some Micron rivals, roseate connected Monday morning.