Just recently we have seen “the Trump administration has blacklisted nine Chinese companies including Xiaomi for their alleged connections with the Chinese military”.
It remained unseen that how the world’s third-largest smartphone maker – Xiaomi will react to this. While now, the company has finally responded to this move of the US government.
According to Xiaomi, the company is currently working normally. But they will take appropriate steps to protect the interests of the shareholders. The possible consequences of this incident are being reviewed to fully understand its impact on the team.
Following this ban, 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.
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This new decision will affect the Chinese market as there will not be more transactions between these companies in the United States. Well, it is 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.
However, it remains to be seen how long these firms will be blacklisted in the country as the new president will take over in the coming days which could change this decision.
