Chinese smartphone maker Xiaomi is the latest to be added to the Trump Administration’s military blacklist. On Thursday, the Department of Defense added nine more companies to its list of alleged Chinese military fellowships, including Xiaomi.
Xiaomi was the world’s third-largest smartphone maker as of Q3 last year, coming ahead of Apple and trailing behind Samsung and Huawei, according to market researcher IDC.
In November, President Donald Trump signed an administration line-up, which was set to take effect in January, to bar investment in fellowships designated as supporting efforts of China’s armed, intelligence and safety apparatuses. Huawei, China’s major chipmaker SMIC, and the country’s three largest telecoms hustlers are among the targets of the list.
The military blacklist are distinct from the Commerce Department’s entity list, which famously trims Huawei, DJI, SenseTime and other Chinese tech conglomerates off their U.S. suppliers over national security concerns.
Xiaomi” confirms that it is not owned, ensure or be associated with the Chinese armed, and is not a’ Communist Chinese Military Company’ defined under the NDAA[ National Defense Authorization Act ]. The companionship will take appropriate course of actions to protect the interests of the company and its shareholders ,” a Xiaomi spokesperson said in a statement.
Like the entity list, the U.S. government’s military blacklist has caused disorder around compliance. In response to the sanctions on China Mobile, China Unicom and China Telecom, the N. y. stock exchange met three moves. It first announced to delist the three Chinese telcos, then decided to stop to after consultation with regulators, but eventually turned its reversion and said it would delist them, after all, upon further evaluation.
” The busines is reviewing the potential consequences of this to develop a fuller understanding of its impact on the group. The busines will impel further advertisements as and when appropriate ,” the Xiaomi representative said.
Xiaomi is listed in Hong Kong, and the executive order could make American investors to dispossess their holds in the phone maker, whose shares scrambled more than 11% to $29 apiece on the blacklist announcement.
While Xiaomi’s operations and technology access are unaffected in the latest round of U.S. authority abuse, a furnish order restrict could become a sword of Damocles. The Chinese phone maker has collaborated closely with Qualcomm and was notably the first to get the high-end Snapdragon 888 microchips. To escape restrictions imposed by the entity list, Huawei spun out its budget phone unit Honor in a bid to save its supply chain. It remains to be determined how Joe Biden will undertake Trump-era policies towards Chinese tech giants.
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