Monday, June 17, 2024

The US blacklists Xiaomi, the world’s number 3 smartphone manufacturer

“Xiaomi has been designated by the Trump administration as a “Communist Chinese military company” that would qualify it as one of the blacklisted companies under the Executive Order of the Trump Administration in November that prohibits American securities and investment companies from putting capital resources on investments that fund “Communist Chinese military companies.

That executive order stated that the “PRC exploits us investors to finance the event and modernization of its military,” by selling securities to US investors that trade on public stock exchanges both within the US and overseas.

By designating Xiaomi together of those military companies, which also happens to be the amount 3 smartphone maker within the world, the Administration hopes to urge US companies to divest in Xiaomi by November 2021. Xiaomi doesn’t seem to belong on this list with other industrial, aerospace, and chemical, and telecommunications companies – among others.

Huawei is on this list, but that’s possibly because Huawei is massively developing telecommunications infrastructure. There is a risk of the order being reversed with less than a week left before the Biden Administration takes over.We wonder if tension between the US and China are going to be relieved within the least by the new Administration and if we’ll ever get to ascertain Chinese phone makers finally make a splash in the US market saturated by Samsung and Apple.

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