The Trump’s administration is not ready to stop bullying the Chinese companies. It has yet again blacklisted one of the biggest Chinese phone makers, Xiaomi, alongside 8 other companies in the US today.
A report by Reuters said that Xiaomi has been put on a blacklist of companies that have ties with the Chinese military. This blacklist is different and should not be confused with the US Commerce Departmentâ€™s Entity List, which includes telecom equipment maker Huawei, ZTE, and others. The Trump AdministrationÂ recently addedÂ popular drone maker DJI to the list as well.
What The Ban Mean For Xiaomi
What does this mean for Xiaomi? Will this affect its Android License like Huawei? Will it hinder the companyâ€™s plans to expand to North America? The answer to these questions is no. Xiaomi can still import US technologiesÂ and sell its products in the US without any hiccups.
Being placed on the list of â€œCommunist Chinese military companiesâ€ means thatÂ US investors can â€œno longer invest in Xiaomiâ€. They are barred from purchasing shares or securities of companies on this special blacklist. If any US investor already has a stake in the company, then they have to divest their holdings by November 11, 2021. This applies to all of the nine companies that have been named in the updated blacklist.
The blacklist and divestment are in accordance with an executive order signed by US President Donald Trump a couple months ago. Xiaomi now joins the likes of Huawei, SMIC, and others on the blacklist. Some of these Chinese companies are also on the Entity List and cannot do business with other US giants.
President-elect Joe Biden will take office from January 20 and thereâ€™s a possibility that he will revert the executive order. We suggest you take this information with a grain of salt and wait for an official announcement. Xiaomi is yet to make an official statement on the blacklisting as well.