China Industry Group Reportedly Says Intel Has 'Constantly Harmed' National Security

Key Takeaways

• The Cybersecurity Association of China said Intel products pose a national security risk to that country, according to reports.

• The Chinese agency called on the country's internet regulator to conduct a review of Intel products.

• Last year, Chinese regulators banned the sale of Micron products to domestic operators.

Intel (INTC) shares fell Wednesday after a Chinese industry group said the chips that Intel sells in China should be reviewed for national security risks.

According to a report Wednesday from Reuters, the Cybersecurity Association of China (CSAC) said Intel has “constantly harmed” the country’s interests and security. The body, while not a government agency itself, called for a review of Intel products by the Cyberspace Administration of China (CAC), the country’s cyberspace and internet regulator, the news agency reported.

"It is recommended that a network security review is initiated on the products Intel sells in China, so as to effectively safeguard China's national security and the legitimate rights and interests of Chinese consumers," CSAC said Wednesday, per Reuters.

Not First Action in China Against US Chip Maker

Intel didn't immediately respond to a request for comment by Investopedia.

There is some precedent for China taking action against American semiconductor companies. In 2023, the CAC banned the sale of Micron Technology (MU) products to companies in China, citing a similar national security review.

Intel shares dropped about 4% early Wednesday, then recovered some ground to trade about 1% lower, at $22.42, by 1:15 p.m. ET. They have lost more than half their value year-to-date.

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