Earlier this week, the US blacklisted Xiaomi and 8 other Chinese companies for allegedly having ties with the Chinese military. This means that companies or investors originating from the US are no longer allowed to invest in Xiaomi and those who are already doing so are to divest by November 2021.
However, it is worth mentioning that this is not the same as Huawei’s blacklisting, which destroyed the Chinese company’s smartphone market all over the globe. Huawei’s blacklisting is a much more complex ban that not only stops American companies from doing business with Huawei but also companies that use American technology in their products.
Xiaomi, on the other hand, is still allowed to import US technology without a license, but it is unclear how long the company will be allowed to do so. The company has recently released a statement denying any kind of ties with the Chinese military. The statement reads:
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.
It remains to be seen what sort of action the new Biden administration will take once it replaces the Trump administration.