DETROIT, May 27 (Reuters) – The United States “won’t tolerate” China’s efficient ban on purchases of Micron Technology (MU.O) reminiscence chips and is working carefully with allies to deal with such “economic coercion,” U.S. Commerce Secretary Gina Raimondo mentioned on Saturday.

Raimondo instructed a information convention after a gathering of commerce ministers within the U.S.-led Indo-Pacific Economic Framework talks that the U.S. “firmly opposes” China’s actions in opposition to Micron.

These “target a single U.S. company without any basis in fact, and we see it as plain and simple economic coercion and we won’t tolerate it, nor do we think it will be successful.”

China’s our on-line world regulator mentioned on May 21 that Micron, the largest U.S. reminiscence chip maker, had failed its community safety assessment and that it will block operators of key infrastructure from shopping for from the corporate, prompting it to predict a revenue reduction.

The transfer got here a day after leaders of the G7 industrial democracies agreed to new initiatives to push again in opposition to financial coercion by China — a call famous by Raimondo.

“As we said at the G7 and as we have said consistently, we are closely engaging with partners addressing this specific challenge and all challenges related to China’s non-market practices.”

Raimondo additionally raised the Micron concern in a meeting on Thursday with China’s Commerce Minister, Wang Wentao.

She additionally mentioned the IPEF settlement on provide chains and different pillars of the talks could be in line with U.S. investments within the $52 billion CHIPS Act to foster semiconductor manufacturing within the United States.

“The investments in the CHIPS Act are to strengthen and bolster our domestic production of semiconductors. Having said that, we welcome participation from companies that are in IPEF countries, you know, so we expect that companies from Japan, Korea, Singapore, etc, will participate in the CHIPS Act funding,” Raimondo mentioned.

Reporting by David Lawder; Editing by Chizu Nomiyama

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