US lawmakers seek national security probe of Chinese chip giant CXMT after blockbuster IPO: ‘Ticking time bomb’ - New York Post

What the report says

The New York Post reported that a bipartisan group of U.S. lawmakers is preparing to press the Trump administration for a formal national security review of Chinese memory-chip maker ChangXin Memory Technologies, or CXMT, after the company’s sharp stock-market debut in Shanghai. According to the Post, CXMT shares rose 466% on Monday, raising $8.6 billion and giving the company an estimated market value of about $487 billion, making it the most valuable firm listed on a mainland China exchange.

The report cited unnamed U.S. officials and sources close to the matter who suspect possible Chinese Communist Party involvement in supporting the IPO. One senior federal official told the Post there was concern that party intervention may have helped drive the offering. Another government source described CXMT as closely tied to China’s military-industrial system and warned that its expansion could create national security risks. The Post also reported that congressional leaders in the “Gang of 8” are seeking an urgent classified briefing on Beijing’s role.

The Pentagon added CXMT to its list of Chinese military companies operating in the U.S. on June 8, according to the Post, but has not imposed a broader blacklist. The article said lawmakers may seek to attach the review effort to the National Defense Authorization Act, the annual defense policy bill.

The concern centers on whether Chinese-made chips could enter consumer products and defense-related supply chains, creating espionage or cybersecurity vulnerabilities. More broadly, the case reflects the intensifying technology rivalry between Washington and Beijing as China invests in domestic semiconductor companies to reduce reliance on Western suppliers. The Post said it sought comment from the Pentagon and CXMT.