Yesterday, the Trump-led US government tagged Xiaomi a “Communist Chinese military company”, thus blacklisting it. This means that US companies and investors will be prohibited from investing in Xiaomi (and those who already have are to divest by November of this year).
Please note that this is not the same ‘blacklisting’ that dealt with Huawei’s smartphone market share worldwide, that’s a much more complex ban on any US companies, or even companies using US technology, doing business with Huawei.
Today, Xiaomi released the following statement on the matter:
The company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The company reiterates that it provides products and services for civilian and commercial use. The company confirms that it is not owned, controlled, or affiliated with the Chinese military, and is not a â€œCommunist Chinese Military Companyâ€ defined under the NDAA. The company will take appropriate course of actions to protect the interests of the company and its shareholders.
The company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The company will make further announcements as and when appropriate.
Of course, we are not expecting anything less. It remains to be seen what the new Biden administration will do about the Trump administration’s various bans aimed at Chinese companies. For the good of competition in the smartphone space across the world, let’s hope they will be overturned. No announcements to that effect have been made so far, however.