The gigantic Chinese cellphone manufactured Xiaomi has just been banned by the Trump administration, designating Xiaomi as a “Communist Chinese military company”
With few days left in office, the Trump administration has decided to put one more Chinese electronics giant in its sights: Xiaomi, the world’s number three phone manufacturer.
That executive order stated that the “PRC exploits United States investors to finance the development and modernization of its military,” by selling securities to US investors that trade on public stock exchanges both in the US and overseas.
This ban only prevents US companies to invest in Xiaomi, which doesn’t mean that Xiaomi cannot get services from US companies like Google and others. This put a relief to Xiaomi fans as so far Xiaomi is still allowed to use Google Services, unlike Huawei.
According to The Verge, a Xiaomi spokesperson gave a statement about this situation saying that Xiaomi is “operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses.” and that Xiaomi “is not owned, controlled or affiliated with the Chinese military, and is not a ‘Communist Chinese Military Company’”.
It’s surprising seeing Xiaomi on the list at all. Most of the other companies on the list are more industrially oriented, specializing in aviation, aerospace, shipbuilding, chemicals, telecommunications, construction, and other forms of infrastructure. Huawei, the world’s number two phone maker, is also on the list, but Huawei builds large-scale telecommunications equipment.
The Biden administration is days from taking over, and we might see this rule dismissed and potentially see Xiaomi on the US Market Again.