USA / Xiaomi blacklisted by US for its links to Chinese military

The US has blacklisted smartphone manufacturer Xiaomi for its links to the Chinese military. The move means US investors will be unable to purchase Xiaomi securities and will have to divest holdings they already own by November 11, 2021. Eight other businesses including state-owned aircraft maker COMAC were placed on the list of companies with connections to the Chinese military.

Vikrant Shekhawat : Jan 15, 2021, 09:04 AM
Washington: With six days left in office, the Trump administration has decided to put one more Chinese electronics giant in its sights: Xiaomi, the world’s number three phone manufacturer. The US Department of Defense is now designating Xiaomi as a “Chinese Communist military company,” meaning it’s now vulnerable to Trump’s executive order that bans the US from investing in such companies — and might force US companies and other US investors to divest in Xiaomi on November 11th, 2021, as reported by Reuters.

While a Biden administration might overturn the order before then, it’s interesting to see an electronics company like Xiaomi on the list at all. Most of the other companies on the list are more industrially oriented, specializing in aviation, aerospace, shipbuilding, chemicals, telecommunications, construction, and other forms of infrastructure. Huawei, the world’s number two phonemaker, is also on the list, but Huawei builds large-scale telecommunications equipment too; US lawmakers have been specifically worried about Huawei being part of the nation’s cellular infrastructure.

This list isn’t the same as the US Commerce Department’s “entity list,” by the way, which typically keeps US companies from exporting technology to companies that have been blacklisted, like dronemaker DJI. But some Chinese companies like Huawei (and Chinese chipmaker SMIC) are on both lists now.

Speaking of the Commerce Department, it’s moving ahead to try to block six entire countries, now designated as “foreign adversaries,” from providing communications equipment to the United States at all, including China, Russia, Iran, North Korea, Cuba, and the government of Venezuela’s Nicolás Maduro.

Xiaomi didn’t immediately respond to a request for comment.