After Huawei, US administration blacklists Xiaomi and 8 other firms due to alleged ties with Chinese army

by Sheetal

As we know that Huawei already banned in the US, now the Trump administration has set its sights on Xiaomi, the next major Chinese smartphone manufacturer.

Just recently, the US administration has blacklisted nine more Chinese company including Xiaomi, which is the world’s top third smartphone maker. This step has taken because of these companies alleged connections with the Chinese military.

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These companies will be subject to the new US investment ban, which will force American investors to blacklist their shares by November 11, 2021. Due to an executive order signed by President Trump in November 2020.

However, the Trump administration has not provided any evidence to prove the relationship between Xiaomi or other companies and the Chinese military. Given that Xiaomi is essentially a smartphone and electronic products company, Xiaomi’s blacklisting is very sudden and unexpected.

Prior to the move, the Trump administration’s work focused on blacklisting companies from key industries such as telecommunications (Huawei) and semiconductor technology (SMIC).

Currently, the United States has blacklisted more than 60 Chinese companies, including the largest drone manufacturer DJI and China’s top semiconductor company SMIC.

However, it is worth noting that the Blacklist differs from the American entity list. The Biden administration, which came to power on 20 January, is also likely to reverse this decision. But until then, how Xiaomi and other Chinese companies react to this casual blacklist can be seen.


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