Donald Trump’s presidency in the United States ends any day, but it is evident that he strongly believes that he must fight any major Chinese company that has at least shades of suspicion in cooperating with the PRC military. Several years later Huawei restrictionsTime for Xiaomi.
Xiaomi is banned by the United States
Donald Trump will not rest until the “me” of his presidency is dysfunctional. Although Far Eastern companies appear to be the last thing they will do in the remaining days in office, their management leaves no room for speculation – the US foreign policy towards Chinese companies is still pretty impressive.
Xiaomi is the third smartphone manufacturer in the world, although in the US the company is practically absent in the consumer segment. These are the large Chinese companies that the US Department of Defense watches. According to the report ReutersAnd the Xiaomi, along with eight other Chinese companies, has appeared on the “blacklist” of companies suspected of working closely with Chinese military agencies. In a statement issued by the Ministry of Defense, they were immediately named “Communist Chinese military corporations.”
The Xiaomi lock does not take the same shape as in the case of Huawei. US companies can still work with Xiaomi, however American investors are forced to sell their shares in this company by November 11, 2021.
Four years of pressure from the United States
During Donald Trump’s presidency, his administration imposed a number of restrictions on Chinese technology and communications companies. The Ministry of Commerce was the most opinionated, which deprived ZTE and Huawei of the possibility of incorporation Business contacts With major partners like Google and Qualcomm. Not long ago among the suspected companies in the United States, DJI is also included.
Despite the fact that Xiaomi is not officially present in the US, it is evident that it is a strong enough brand and has enough business relations with American entrepreneurs that the red warning lights have been lit in the Ministry of Defense.
Given the aforementioned situation, Xiaomi decided to send an official message:
The company is law-abiding and operates in accordance with the relevant regulations of the jurisdictions in which it does business. It provides products and services for both civil and commercial use. The company asserts that it is not owned, controlled or affiliated with the Chinese military, and is not a “Chinese Communist Military Corporation” as defined by the NDAA. The company will take appropriate measures to protect the interests of the company and its shareholders.
The company is analyzing the potential consequences of this event to gain a fuller understanding of its impact on the group. The company will provide further information as required.