Trump adds Xiaomi to blackist for Chinese military firms

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Credit score: Dhruv Bhutani / Android Authority

  • Immediately, the Trump administration added Xiaomi to a blacklist reserved for corporations with alleged ties to the Chinese language army.
  • With at the moment’s transfer, US-based traders might want to take away any and all investments with the Chinese language firm.
  • This isn’t the identical “Entity Record” that’s drastically affected Huawei’s enterprise, nevertheless it’s nonetheless not excellent news.

In accordance with Reuters, the Trump administration in america added 9 Chinese language corporations to a blacklist at the moment. Of these 9 corporations is Chinese language smartphone producer Xiaomi.

To be clear, this isn’t the identical record to which Trump added Huawei’s title in 2019. That record is expounded to companies which have supposed ties to the Chinese language authorities immediately and forbids US-based companies from working with them. This record is expounded particularly to the Chinese language army. Apparently, the Trump administration thinks Xiaomi’s ties to the army are shut sufficient that it poses a possible menace to the US.

Associated: The Huawei ban: Everything you need to know

This blacklist has been in existence since 1999. Nevertheless, it lacked any actual tooth till Trump granted an government order which forbids US traders from investing in blacklisted companies. With Xiaomi’s title added to the blacklist, issues simply bought robust.

Xiaomi blacklist: What does this imply?

If you’re involved that this information will decimate Xiaomi’s enterprise as we’ve seen with Huawei, that’s seemingly not the case. Xiaomi’s presence on this blacklist merely prevents traders based mostly within the US from investing in Xiaomi. It received’t have an effect on Xiaomi’s provide chain and received’t stop US-based companies from promoting gear and supplies to Xiaomi.

Associated: Xiaomi in 2021: Five things we want to see

It can, nevertheless, trigger Xiaomi’s inventory to drop. It can additionally trigger the corporate to lose numerous liquid capital, as American traders might want to promote their inventory in Xiaomi by November 11, 2021.

Time will inform whether or not or not these modifications will likely be crippling for Xiaomi, a hindrance, or merely an annoyance. Both manner, it undoubtedly received’t be good or useful.

Donald Trump will solely be President of america for just a few extra days. Nevertheless, it’s attainable he might use his final days in workplace to make as many sweeping modifications as attainable akin to at the moment’s instance.

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