Ahead of resignation, Trump strikes more Chinese firms, Xiaomi and Comac gets blacklisted in the US

by RPRNA Group

Back in December 2020, the Presidential elections in the US were held which was fought between the current president Donald Trump and the former vice president Joe Biden. The results of the election came in the favour of Joe Biden, who will take the charge of the United States for the next five years.

As per the rules in the country, the new president-elect will take charger after the resignation of the sitting president on January 20, 2021. There are only a few days left in completion of the Trump Administration. Meanwhile, the Democratic Party has prepared for Trump’s removal before January 20 by the impeachment motion against Trump.

If you don’t know, the opposition party in the US had blamed President Trump for inciting violence in the US Capitol Building where 5 citizens were killed.  After another impeachment motion, Donald Trump has become the first President in the history of America to be impeached twice.

According to Reuters, the Donald Trump-led US government has blacklisted nine Chinese companies including the world’s third-largest smartphone maker Xiaomi, because of the alleged links of these firms with the Chinese military. The nine blacklisted firms also include Comac (a planemaker company).

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Following the restrictions, these companies will be subject to the new US investment ban, which will force US investors to divest their shares on the blacklist by November 11, 2021. It was mandated by a 1999 law that required the Department of Defense to compile a list of companies owned or controlled by the Chinese military.

Previously, the Trump Administration has also banned the largest Chinese smartphone maker, Huawei with the same charges of ties with the Chinese military. Huawei is also restricted to operate and perform any business in the country and these recently added Chinese companies will also face the same problem.

This new decision will have an impact on the Chinese market as there will be no more transactions between these companies in the United States. And their products and services will not be applicable in the country. Although it remains to be seen, how long these firms will be blacklisted in the country as the new president will take charge in the coming days which could change this decision.

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