The Trump administration has added Xiaomi to a blacklist reserved for companies with alleged ties to the Chinese military.
US companies and investors will be prohibited from investing in Xiaomi and those who already have are to divest by November of this year.
Unlike the Huawei blacklisting, this list is related specifically to the Chinese military.
The Huawei blacklisting which destroyed the company’s smartphone share worldwide was a more complex ban on any US companies, or even companies using US technology, doing business with Huawei.
Yesterday (Jan 15) Xiaomi has issued the following statement on the matter:
The company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The company reiterates that it provides products and services for civilian and commercial use. 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.