The Trump administration has added several Chinese companies to its blacklist, including Xiaomi. We explain what it means
Hard blow for Xiaomi! A few days before the end of Donald Trump’s mandate, the Republican administration has decided to strike again against the Chinese economic forces by adding nine companies from the Middle Empire to the blacklist of companies supposedly linked to the government or to the the Chinese army and designated as “Chinese communist military companies ».
Among these nine companies are smartphone maker Xiaomi and social network TikTok.
Xiaomi blacklisted, but not the same as Huawei
The case is very reminiscent of what happened to Huawei in 2019, leading to its loss of Android license, and yet it is not. The blacklist that Xiaomi is on today – and that Huawei is also on – is different from theentity list which prevents any commercial relationship with the United States and on which, for example, DJI is located. In other words, rest assured: Xiaomi should not lose, at least immediately, access to the Google ecosystem.
This blacklist is intended to prevent the financing of companies supposedly too close to the Chinese government. Thus, all American investors in Xiaomi will have to withdraw their capital from the electronics company by November 11, 2021. After this date, no American will be able to buy Xiaomi shares. As a result of this announcement, Xiaomi’s stock plunged 10% on the stock market.
After his inauguration on January 20, Joe Biden, the new president of the United States, can reverse this decision if he wishes. However, this remains quite unlikely.
In a press release that Xiaomi sent to Frandroid, the brand denies having any link with the Chinese government:
Xiaomi has complied with the law and operates in accordance with the laws and regulations of the jurisdictions in which it operates. Xiaomi recalls that it provides products and services for civilian and commercial use and confirms that it is not owned, controlled or affiliated with the Chinese military and that it is not a “Chinese Communist Military Society“. The company will take appropriate measures to protect its interests and those of its shareholders.
Xiaomi is examining the potential consequences of this situation in order to better understand its impact on the group.
China being considered by the United States as a “foreign adversaryThe Trump administration is trying to prevent any company in the People’s Republic from providing communications equipment to the United States in order to avoid any espionage. If Joe Biden follows Donald Trump on this road, Xiaomi could one day join Huawei and DJI on theentity list. Case to be continued.