Xiaomi blacklisted by the US – Chinese mobile phone maker Xiaomi has been blacklisted by the US after Huawei. Xiaomi’s entry to the trade blacklist has limited investment from the US into the company. After the Statement from Trumph, This Technology news goes viral online rapidly
President Donald Trump, who will end his term of office, has only worsened relations between the US and China. Trump is intensifying his crackdown on Chinese corporate interests. It is known, the US Department of Defense has blacklisted Xiaomi since Thursday (14/1/2021) because of its strong suspicion of ties to the Chinese military.
Bamboo Curtain chipmaker Semiconductor Manufacturing International Corp has also been blacklisted to limit its business with US companies. The US even forced investors to sell their shares in the company. Xiaomi’s blacklist allegedly came as the company made ambitious plans for global growth. In the third quarter of 2020, Xiaomi managed to beat the US mobile phone manufacturer, Apple, in terms of mobile phone sales / shipments.
Xiaomi became the world’s third-largest smartphone maker at the time, outperforming the US tech giants from the global top three for the first time in 10 years. Xiaomi has also been placing aggressive orders with suppliers. The hope is that the company can seize lost market share from Huawei amid the US crackdown.
Responding to the US blacklist, Xiaomi denied affiliation with the Chinese military.
This cellphone manufacturer nicknamed Apple of China has arguably managed to carve out its name as a manufacturer of cellphones with premium specifications, but at affordable prices. Not surprisingly, this company is occupying top positions in several handset markets, such as India.
Xiaomi is also one of the leading clients of the two largest mobile chip developers in the world, Qualcomm US and Mediatek Taiwan. The latest flagship smartphone with the Mi 11 type launched in December uses Qualcomm’s most premium mobile processor, the Snapdragon 888 5G system-on-chip.
Meanwhile, Trump accused China of increasingly exploiting the US capital. (Xiaomi blacklisted by the US)
Following Xiaomi’s blacklist, Trump prohibits US citizens from owning securities, directly or through funds, in companies deemed to have ties to the Chinese military. The ban took effect from January 11, 2021 yesterday.
while investors who already have assets will be given until November 2021 to release / sell them. Noted, Xiaomi’s main investor comes from the US. Some of them are Vanguard Group, BlackRock Institutional Trust Company, Wells Capital Management, and Geode Capital Management.
On Trump’s orders, the company’s share price fell 9 percent on the Hong Kong stock exchange. Apart from Xiaomi, the US Department of Defense also named several companies affiliated with the Chinese military. Among them include Advanced Micro-Equipment Fabrication Co. otherwise known as AMEC.
AMEC is one of China’s national champions in chip equipment. The company has been listed on the Shanghai tech-heavy STAR board since 2019. SMIC and Yangtze Memory Technologies, have accelerated the use of homemade chip equipment such as those made by AMEC, to reduce their reliance on American equipment.
Another company blacklisted is the Commercial Aircraft Corporation of China. The plane maker aims to compete with Boeing and Airbus.
So far, no more than 40 Chinese entities are suspected of being military companies. These include the mobile operators China Mobile and China Telecom; the world’s top surveillance camera maker, Hikvision; and the leading Chinese server maker Inspur. Xiaomi blacklisted by the US.