FirstFT Asia: China bans US chipmaker Micron

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Good morning. China has said that US chipmaker MicronTechnology’s products have posed “serious network security risks” and banned operators from buying them. The decision comes amid rising tensions between the world’s superpowers and marks the first major measure taken against a US semiconductor group.

The Cyberspace Administration of China announced on Sunday that the company, which is the largest US maker of memory chips, “posed significant security risks to China’s critical information infrastructure supply chain.”

The move follows a seven-week investigation into Idaho-based Micron by the CAC, an investigation that has been seen in retaliation for US efforts to curb China’s access to key technology. Last October, Washington introduced sweeping export controls on wood chips and the Netherlands and Japan have since followed.

China is an important market for Micron, and analysts have warned that Beijing’s restrictions could even prompt Chinese companies that don’t provide “critical information infrastructure” to seek to eliminate Micron from their supply chains.

Here’s what I’m looking at today:

• Elections in Türkiye: The Turks return to the polls to vote on presidential ballot, where current Recep Tayyip Erdoğan remains the favorite to win.

• US debt ceiling: Joe Biden returns from the G7 summit to try to solve the problem Impasse on the US deficit ceiling.

Who will win the US-China tech war? Join leading FT journalists and a colleague from Nikkei Asia for a Webinar only for subscribers on May 25th and ask your questions to the panel.

Five more top stories

1. Vladimir Putin says Russian forces have captured the eastern city of Bakhmut, despite Kyiv insisting that the battle “was not over”. The Battle of Bakhmut was the longest and bloodiest fought in Ukraine, claiming more than 100,000 casualties and reducing the city to ruins. Read more about what Russia is hailing as its first major victory since the invasion.

2. The G7 has issued its strongest condemnation of China, citing concerns about growing threats to military and economic security posed by Beijing. The G7 members are “seriously concerned” on events in the East and South China Seas and urged Beijing to push Russia to withdraw its troops from Ukraine.

• Still at the G7: Ukrainian President Volodymyr Zelenskyy has called on Brazil and India to unite behind his proposal to end Russia’s war, face the leaders of the two countries who have worked to maintain close ties with Moscow.

3. Bhutan is turning to cryptocurrency and drone technology looking for rapid growth and returns. The Himalayan kingdom is partnering with Singapore-based Bitdeer, one of the world’s largest bitcoin miners, to raise up to $500 million for a cryptocurrency mining business despite sales, contagion and scandals that have rocked the industry. Read more about the country’s newest crypto firm.

4. Allen & Overy merges with Shearman & Sterling of New York to form a law firm with combined revenue of approximately $3.4 billion, in one of the largest transatlantic law deals in history. Both companies said they wanted to build stronger expertise in private equity, life sciences and energy transition. Read more about how Allen & Overy’s bid to conquer the US market.

5. Exclusive: One of the leading communication agencies in the world he told clients he no longer considers Twitter “high risk,” just days after Elon Musk named publicity stalwart Linda Yaccarino as the social media platform’s new chief executive officer. GroupM decision it is likely to lead to increased spending on the platform by customerspeople close to the company said.

How well did you manage to keep up with the news this week? Take our quiz.

The big read

Late Thursday afternoon, investors around the world received a note entitled Japan’s Rising Sun. According to investors, a confluence of economic and geopolitical factors has made Japan more attractive than it has been in a while. Just hours before Japan’s rising sun hit mailboxes, the broad-based Topix index of Japanese stocks hit a new 33-year high on a rally led by an exceptional six consecutive weeks of buying by foreign institutions. Japan is finally indulging in – and is indulging in – some bravado. The question is, how long will the phenomenon last?

We are also reading. . .

• The AI ​​Revolution Transforming Education: Since ChatGPT arrived on the scene last year, the powerful, freely available AI software has sparked intense speculation about the long-term repercussions on a number of industries. But nowhere was the impact felt more immediately than in the instructionwrite Bethan Staton and Madhumita Murgia.

• Chinese comic repression: The investigation and fine of a stand-up comedian in Beijing after a performance last weekend has revived concerns about freedom of speech in China and the role of comedy in the increasingly authoritarian state of Xi Jinping.

• mass layoffs: There is a wave of mass layoffs that spanned industries, mainly in technology. There is plenty of evidence that the human cost of being fired can be dire, but if job cuts become such a standard business practice as to change the nature of the workforce, asks FT columnist Pilita Clark

Chart of the day

Investors are plow for money in emerging market local currency bonds, as high interest rates and declining inflation make them increasingly attractive relative to dollar assets. Local bonds performed better this year as currencies, including the Mexican peso and the Brazilian real, strengthened more than 10% versus the dollar. “Local markets are far outpacing external debt,” said Paul Greer, emerging markets debt portfolio manager at Fidelity International. “Frankly, I think that trend will likely continue for the rest of the year.”

Take a break from the news

I FT six movies to watch this week include that of Ari Aster Beau is scared with Joaquin Phoenix (above), profile of Nam June Paik Moon is the oldest TV and Kelly Fremon Craig’s adaptation of the Judy Blume novel Are you there God? It’s me, Margaret.

Additional contributions of Gary Jones E Gordon Smith