China bans US chip firm Micron claiming it poses a risk to national security

China has banned a US microchip firm claiming it risked national security as tensions between the countries continue to grow.

The Communist state’s cyberspace regulator announced operators would no longer be allowed to buy products from Micron after the Idaho-based business failed a security review.

US officials condemned the action as having ‘no basis in fact’ and said the ‘recent raids and targeting’ of its firms contradicted China’s claims it was an open market. 

The escalating tit-for-tat comes after Washington restricted export of its most sophisticated computer chips to stop them being used to advance China’s military capabilities.

China is an important market for Micron, with its chips mostly concentrated in smartphones and personal computers.

Both the mainland and Hong Kong reportedly generated a quarter of its £25billion revenue last year. A Micron spokesman said they were ‘assessing’ their next steps.