The United States of America (USA) has blacklisted the smartphone company Xiaomi Corporation and 8 other Chinese companies over national security concerns. This decision has been taken by the Donald Trump’s administration on Jan 14, 2021.
The US Department of Defense released the names of additional “Communist Chinese military companies” operating directly or indirectly in the United States.
- Xiaomi Corporation
- Advanced Micro-Fabrication Equipment Inc. (AMEC)
- Luokong Technology Corporation (LKCO)
- Gowin Semi-conductor Corp
- Grand China Air Co. Ltd.
- Global Tone Communication Technology Co. Ltd.
- China National Aviation Holding Co. Ltd.
- Commercial Aircraft Corporation of China Ltd (COMAC)
“The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities,” US Department of Defense said in its press release.
Xiaomi is the third largest smartphone company in the world. It has been accused of colluding with the Chinese military. .
According to Reuter’s report, American investors will have to exit their investments in these companies after this decision. They will have to do so by 11 November 2021. Earlier, US has done the same with Chinese company Huawei.
Xiaomi’s direct competition is with Apple of America. Xiaomi was co-founded by billionaire entrepreneur Lei Jun about 10 years ago. The company was also initially invested by Qualcomm, a US chipmaker. Xiaomi gradually expanded its business outside of China to Europe and India. According to the International Data Corporation, Xiaomi overtook Apple in global smartphone sales in the third quarter.