The administration of outgoing US President Donald Trump has put Xiaomi on the Commerce Department’s “blacklist”. The organization is called “the communist Chinese military structure”, on the basis of which the US authorities officially prohibit their corporations from doing business with it. This was done within the framework of the 1999 law, which is directed against the activity of the PLA.
Previously, this list has already included Huawei, as well as the manufacturer of microchips SMIC. In total, as of today, there are 35 names in it – American companies must receive permission in a special order if they want to interact with any of them. In addition, investors are prohibited from having assets there, so they will have to sell their shares before November 21, 2021. But the administration of the new President Biden may still cancel everything.
Xiaomi completely denies its belonging to the Chinese military system. They insist that the very wording “communist and military” is an outdated cliché from the US National Defense Authorization Act. The company is the third largest smartphone manufacturer in the world and can only create competition for American IT giants, but not a military or political threat to the whole country.