China has imposed sanctions on US memory chip maker Micron Technology, claiming it poses a 'national security risk'.
This has banned the firm from major infrastructure projects in the world's second largest economy.
The Cyberspace Administration of China (CAC) said on Sunday that products made by Micron would be banned from being sold to operators of the country's key information infrastructure.
However, the CAC did not provide further details about the risks it said it had discovered from Micron's products.
This is Beijing's first drastic move against US chipmakers, and is seen as retaliation against Washington's tightening restrictions on chip exports to China.
In response to the ban, the US Commerce Department denied Beijing's claims as 'baseless'.
He added that it will work with allies to deal with the manipulation of the memory chip market caused by China's actions.
Before the CAC action, Micron Technology last week announced it would invest around 500 billion yen ($3.6 billion) to develop technology in Japan.
