The US government had blacklisted Xiaomi and 8 other Chinese companies
The US government on Thursday added nine Chinese companies — including Xiaomi — to its blacklist of companies with ties to the Chinese military.
This, as the Trump administration has set its eyes on Xiaomi, which became the world’s third-largest smartphone maker to date.
Following the said move, investors in the United States can no longer invest in Chinese companies added to the country’s special blacklist.
In a report on Reuters, they’re barred from purchasing shares and securities of companies like Xiaomi who were a part of the said list and would have to divest their existing holdings in them by November 11, 2021.
Gizmochina reported that blacklisting Xiaomi was “very sudden and quite unexpected” given how Xiaomi was essentially a smartphone and an electronics company.
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Prior to this move, the Trump administration was focused on blacklisting Chinese companies from crucial industries such as telecommunications and semiconductor technology.
Currently, the United States had blacklisted more than 60 Chinese companies — including China’s top semiconductor firm SMIC and the world’s largest drone maker DJI.
However, Gizmochina also reported that it’s worth noting that the said blacklist was different from the US Entity List.
Xiaomi can still import US technology without a license, unlike Huawei or DJI.
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It was also quite possible that the Biden administration that was all set to take power from January 20 2021, overturned the said decision.
However, it remained to be seen how Xiaomi and other Chinese companies reacted to this sudden blacklisting until then.
Meanwhile, Xiaomi released an official statement in response to being blacklisted by the United States government.
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