The US government’s trade sanctions on Chinese smartphone maker Huawei went down as some of the biggest restrictions in the tech space, with Huawei still suffering from consequences like the lack of Google service integration. Recently, the Chinese tech market regulatory body found US-made Micron chips failing a security review. Its ban on the company’s wares can be seen as a retaliatory move following other recent sanctions, but could have a lasting ripple effect on the consumer electronics market.

The Cyberspace Administration of China (CAC) imposed a ban on Micron, preventing any further dealing with Chinese companies handling key infrastructure projects, Reuters reported on Sunday. The agency was vague in its reasoning, but cited significant security risks and a threat to national security.

Micron is well known for making memory chips used in computer hardware like SSDs and RAM, as well as in smartphones. Nearly 10% of its annual business comes from mainland China, according to CNN Business. The company acknowledged the Chinese government’s move and told Reuters it is willing to participate in a discussion with the concerned authority.

Micron is the first US company in the CAC's crosshairs. Notably, the new sanction was issued seven weeks after China originally opened an investigation in March, when Washington curbed exports of specific chip-making tools which could help enhance China’s military prowess.

The US Commerce Department also didn’t stay silent following the sanction. It opposed the restriction on Micron’s business and remarked that China’s actions are inconsistent with the country’s claimed commitment to a transparent regulatory framework and decision to open up its markets.

The Micron ban dented its stock prices in the US, but a ripple effect was also seen among other US firms with a major presence in the Asian country, like Intel and Qualcomm. It is understandable, considering some businesses may want to minimize their dealings with similar firms which could be affected if the trade tensions escalate. Meanwhile, local Micron rivals in China and South Korea, like SK Hynix, could benefit financially from the sanction.

These changes in the industry are a cause for concern because geopolitics and technological innovation don’t really mix. However, the CAC’s ban on Micron will mostly impact consumer electronics manufacturers in China. Micron isn’t operating a monopoly, so the chances of a resultant chip shortage are slim.