The Trump administration has blacklisted nine Chinese companies citing links to Chinese military. The list includes well-known companies like Xiaomi and Comac (Commercial Aircraft Corporation of China). In an official statement, the US Department of Defense has dubbed the blacklisted companies as “Communist Chinese military companies.” Xiaomi has denied any such allegations and claimed that it will take “appropriate course of actions” to protect its interests.
A Xiaomi spokesperson strongly responded to the allegations in a statement, “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 “Communist Chinese Military Company” 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”.
Xiaomi’s inclusion in the blacklist does not affect its supply chain. Hence, it does not prevent companies in the U.S. from providing its services and equipment to Xiaomi. Companies that are included in the blacklist cannot receive investments from U.S. investors.
Reuters reported that American investors will have to divest their holdings in all the blacklisted firms by Nov. 11, 2021. To say again, Xiaomi is not included in the US Commerce Department’s Entity List, which includes companies like Huawei, DJI, and others on which the U.S. government has imposed trade ban.
The newly appointed U.S President Joe Biden will take charge from Jan. 20. While there are hopes that Biden Administration may overturn the order, there is no guarantee about it.
