Chinese smartphone maker Xiaomi is the latest version of the Trump administration’s military blacklist. On Thursday, the Department of Defense added nine more companies to its list of alleged Chinese military companies, including Xiaomi.
According to market researcher IDC, Xiaomi was the world’s third-largest smartphone maker by Q3 last year, ahead of Apple and Samsung and Huawei.
In November, President Donald Trump signed an executive order, effective January, banning investments in companies designated as support for China’s military, intelligence and security equipment. Huawei, China’s largest chip maker SMIC, and the country’s three largest telecom operators are among the targets.
The military blacklist differs from the Commerce Department’s list of entities, which famously separates Huawei, DJI, SenseTime and other Chinese tech companies from their US suppliers due to national security concerns.
Xiaomi has confirmed that it is not owned, controlled or affiliated with the Chinese military, and is not a “communist Chinese military company” as defined by the NDAA. [National Defense Authorization Act]. The company will take appropriate steps to protect the interests of the company and its shareholders, Xiaomi spokesman said in a statement.
Like the entity list, the U.S. government’s military blacklist has created confusion around compliance. In response to sanctions on China Mobile, China Unicom and China Telecom, the New York Stock Exchange made three moves. He first announced the removal of three Chinese telecoms from the list, then decided not to do so after consulting with regulators, but eventually turned the tide and said that after further review, Will delete
He said the company was reviewing its potential outcomes so as to have a full understanding of its impact on the group. A Zwomi spokesman said the company would make “appropriate and appropriate announcements” whenever possible.
Xiaomi’s name is listed in Hong Kong, and the executive order could force US investors to forfeit their holdings in the phone company, whose shares fell less than 11 percent after being blacklisted. At 29 29.
Although access to Xiaomi’s operations and technology has not been affected in the last days of the US government’s invasion, a ban on the supply chain could be the sword of Democrats. The Chinese phone maker is working closely with Qualcomm and in particular was the first to get the high-end Snapdragon 888 chips. To avoid restrictions on the entity’s list, Huawei pulled out its budget phone unit Honor to save its supply chain. It remains to be seen how Joe Biden will deal with Trump-era policies on Chinese tech giants.