China Invites Micron To Expand Presence Amid Diplomatic Thaw: Report

Micron Technology, Inc. MU has been reportedly welcomed by China's commerce minister to fortify its foothold in the Chinese market.

"We welcome Micron Technology to continue to take root in the Chinese market and achieve better development under the premise of complying with Chinese laws and regulations," Commerce Minister Wang Wentao told Sanjay Mehrotra, President and CEO of Micron Technology, according to a news report by Reuters.

China is optimizing the environment for foreign investment and providing service guarantees for foreign enterprises, the report noted, citing a brief statement published on Friday on the commerce ministry's website.

Also Read: AI Demand, Positive Chinese Market Boost Micron's Pricing Dynamics Ahead Of Earnings, Says Analyst

The easing of tensions arrives mere months following China's internet watchdog declaring that Micron hadn't passed a network safety evaluation, leading to a prohibition on Chinese key infrastructure providers purchasing from the American semiconductor company, the report read.

The action taken by China targeting Micron was broadly perceived as a countermeasure to Washington's attempts to limit Beijing's technology access, it added. 

The recent meeting between Wang and Mehrotra is in line with a recent thawing in tensions between the two countries, as officials work to organize a meeting between U.S. President Joe Biden and his Chinese counterpart Xi Jinping later this month at the Asia-Pacific Economic Cooperation summit in San Francisco, Reuters added.

Price Action: MU shares are trading higher by 3.38% to $72.82 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.