Xiaomi becomes latest Chinese firm added to US ‘blacklist’
Xiaomi cops a ban in the US for alleged connections with the Chinese military
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
Smartphone makerXiaomihas become the latest tech giant to fall victim to the Trump administration’s so-called “blacklist”.
According toReuters, Xiaomi is one of nine companies added to the list of Chinese firms suspected of having dealings with the nation’s military.
The news means that American investors will not be able to purchase securities of these companies and existing investors will have to divest from these companies by November this year.
China ban
The Trump administration has been severe onChinese tech companies., withHuaweibearing the maximum brunt of the outgoing US president.
However US lawmakers also recently agreed to a multi-billion-dollar plan toremove technology made by Huawei and ZTEfrom the nation’s telecom network.
Since Trump has just five more days left to remain in power, these decisions will remain unless the incoming Biden Administration overturns them.
Xiaomi has released a statement denying any links with the Chinese Army, saying that it will, “take appropriate course of actions to protect the interests of the Company and its shareholders.”
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
According toCNBC, Xiaomi said, “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.”
Impact on Xiaomi
This blacklist is different from Entity list that has companies likeHuawei,SMICandDJIand only limits US investors from investing in the company. The Department of Defence in its statement has stated that it is “determined to highlight and counter the People’s Republic of China’s military-civil fusion development strategy.”
The Trump Administration has not been able to furnish proof of any wrongdoing by Xiaomi nor has it been able to establish its connection with the Chinese military.
However, we’ve already seen the impact of similar action against Huawei, which has seen revenues shrink following a US bandrying up its suppliesand technology.
And while there are over 60 Chinese companies that have been blacklisted by the US Government, Xiaomi, unlike Huawei, can still import and use US technology likeGoogle’s AndroidOperating Systemor Qualcomm’s chipsets.
That said, Xiaomi may not be immediately impacted, but if the decision does not get overturned with the arrival of the new administration, the company stands to lose significant liquid capital.
ViaReuters
Jitendra has been working in the Internet Industry for the last 7 years now and has written about a wide range of topics including gadgets, smartphones, reviews, games, software, apps, deep tech, AI, and consumer electronics.
TP-Link Archer BE3600 Wi-Fi 7 Router review
Ulefone Armor Pad 3 Pro rugged tablet review
Professionals are facing “tech overload” as they try to juggle multiple devices in the workplace
