US Government Blacklists Xiaomi, Along with 8 Other Chinese Companies

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US Government Blacklists Xiaomi, Along with 8 Other Chinese Companies
The US authorities continues its assault on Chinese corporations. It has blacklisted one of many greatest Chinese telephone makers, Xiaomi, alongside 8 different corporations within the US as we speak.

First reported by Reuters, Xiaomi has been placed on a blacklist of corporations which have ties with the Chinese army. This blacklist is totally different and shouldn’t be confused with the US Commerce Department’s Entity List, which incorporates telecom tools maker Huawei, ZTE, and others. The Trump Administration not too long ago added standard drone maker DJI to the checklist as properly.

What does this imply for Xiaomi? Will it not be capable to license Android like Huawei? Will it hinder the corporate’s plans to increase to North America? The reply to those questions is not any. Xiaomi can nonetheless import US applied sciences and promote its merchandise within the US with none hiccups.

Being positioned on the checklist of “Communist Chinese military companies” signifies that US buyers can “no longer invest in Xiaomi”. They are barred from buying shares or securities of corporations on this particular blacklist. If any US investor already has a stake within the firm, then they need to divest their holdings by November 11, 2021. This applies to all the 9 corporations which have been named within the up to date blacklist.

The blacklist and divestment are in accordance with an govt order signed by US President Donald Trump a pair months in the past. Xiaomi now joins the likes of Huawei, SMIC, and others on the blacklist. Some of those Chinese corporations are additionally on the Entity List and can’t do enterprise with different US giants.

President-elect Joe Biden will take workplace from 20th January and there’s a chance that he’ll revert the chief order. We recommend you’re taking this info with a grain of salt and look ahead to an official announcement. Xiaomi is but to make an official assertion on the blacklisting as properly.

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