The Trump administration has blacklisted nine Chinese companies for their alleged connections with the Chinese military. Companies that have been delisted include Chinese smartphone maker Xiaomi.
Following this move, US investors can no longer invest in those nine companies. The restricted companies will now be subject to a new US investment ban which forces American investors to divest holdings of the blacklisted firms by Nov. 11, 2021. That’s because of an executive order signed by President Trump in November 2020.
JOIN XIAOMI ON TELEGRAM
Blacklisting Xiaomi was very sudden and quite unexpected. Unfortunately, the Trump administration has not given any proof as to how Xiaomi or other companies are tied to the Chinese military.
Previously, the Trump administration blacklisted more companies such as – telecommunications (Huawei) and Semiconductor technology (SMIC). For now, the US has blacklisted over 60 Chinese companies including the world’s largest drone maker DJI and China’s top semiconductor firm SMIC.
However, it’s worth noting that this blacklist is different from the US Entity List. So at least for now, Xiaomi still can import US technology without a license.
Also, it could be possible that the Biden administration that is all set to take power from January 20 overturns this decision. However, until then, it remains to be seen how Xiaomi and other Chinese companies react to this sudden blacklisting.
