The U.S. bans Americans from investing in Xiaomi, citing ties to the Chinese military
- Xiaomi has been blacklisted by the US Department of Defense
- US investors will no longer be able to invest in the Chinese tech company
- Xiaomi is not in the same position as Huawei though and will continue to have access to Android
The U.S. Department of Defense under the outgoing Trump administration has named nine Chinese firms to an investment blacklist, including Chinese phone maker Xiaomi. The list that Xiaomi and eight other firms have been added to is a list of companies that are alleged to be “Communist Chinese military companies” that are operating either directly or indirectly within the United States. This is following the statutory requirement of Section 1237 of the National Defense Authorization Act for Fiscal Year 1999.
Update 1: Xiaomi releases statement; Qualcomm had already exited long back
Xiaomi has released a statement on Twitter disputing the allegations that it is a company tied to the Chinese military. Xiaomi says that the company is not owned, controlled, or affiliated with the Chinese military.
Fortunately for Xiaomi, they have had time to prepare for the worst, which has yet to happen. “In any case, if in the future something happens, we have a plan B. Among other things, we are investing heavily in various semiconductor manufacturers in China, but we believe that our business strategy should not be conditioned by decisions made by politicians. Until now, we have opted for integrating the best components into our products, and we will continue to do so in the future”, Abi Go, Xiaomi’s global product manager, told Xataka early last year. It’s also possible that the forthcoming Biden administration may remove Xiaomi from this blacklist, though that reversal is not guaranteed. Whatever the case may be, this is a major developing story and the impact may not be felt for some time.
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