The company was added to the military blacklist among nine other firms
Xiaomi has been added to the military blacklist by Donald Trump’s administration.
As of Q3 in 2020, Xiaomi became the third-largest smartphone producer globally. Samsung retained the first position followed by Huawei. Xiaomi, however, surpassed Apple by taking the third global position.
The blacklist comes following a banning order authorized by Donald Trump. The ban mandates that the US stop investments with companies supporting China’s military efforts including security, intelligence, and military apparatuses. Huawei, which is also among the three largest telecom firms is on the list.
The military ban, however, differs from the Commerce Department’s entity list. The list cuts SenseTime, DJI, and Huawei among other Chinese companies citing national security involvements.
Xiaomi has confirmed that it is not affiliated, controlled, and owned by the Chinese military. The company has also stated that it is not a Communist Chinese Military Company. In this line, the firm aims to take appropriate action in a bid to cushion the shareholders and the company from these claims.
The decision to delist Xiaomi, which is listed in Hong Kong, could force American investors to divest from the firm. The company’s shares had fallen by over 11% to $29 upon the blacklist broadcast.
We’ve reported that the UK banned the setting up of Huawei’s 5G equipment. The ban will be in effect by the end of September 2021. The restrictions constitute a $333 million measure in the diversification of Britain’s cellular supply chain.