Without warning, the US government has now slammed Chinese smartphone makers Xiaomi with an American investment ban supposedly due to ties with the Chinese military. Xiaomi, in return, refutes those claims but that’s unlikely to count for much.
A few years ago, the US government ended Huawei’s hopes of entering the US market by blacklisting the company and slowly choking the life out of its enterprise. It appears now, however, that Huawei will not be the only major smartphone maker to face similar travails, as Xiaomi has now also been blacklisted.
Yesterday, the Trump administration, without warning, added nine Chinese companies—including Comac and Xiaomi—to its blacklist. The reason for the decision remains vague, with the government chalking it up to the companies having ties with the Chinese military. The ban enforces a no-investment policy, essentially forcing American investors to get rid of their stakes in those companies by November 21 this year.
Xiaomi has, of course, refuted those accusations, saying;
“The Company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The Company reiterates that it provides products and services for civilian and commercial use. The Company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not a “Communist Chinese Military Company” defined under the NDAA. The Company will take appropriate course of actions to protect the interests of the Company and its shareholders. The Company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The Company will make further announcements as and when appropriate.”
It’s unknown how this will develop, especially as the current US administration is on its way out. We’ll be sure to keep you updated either way, though.
A Xiaomi Spokesperson has given a statement regarding this. Attaching it in the image.
“The Company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not a “Communist Chinese Military Company” defined under the NDAA.” #Xiaomi https://t.co/JMpzH1O7F2 pic.twitter.com/ivSAEpTECR
— Ishan Agarwal (@ishanagarwal24) January 15, 2021
Ricci Rox, 2021-01-15 (Update: 2021-01-15)