Xiaomi falls more than 10% in the stock market after being included in the US blacklist

A visitor passes by the logo of the Xiaomi Mi phone during the presentation of the new Xiaomi Mi9 this Wednesday in Beijing (China).

Shanghai (China), Jan 15 (EFE) .- The shares of the Chinese technology Xiaomi on the Hong Kong Stock Exchange fell 10.9% after 3:00 p.m. local time (7:00 GMT) after its inclusion, by the US. ., on a list of companies with alleged ties to the Chinese Army.
In a statement sent today to the Hong Kong stock market, Xiaomi assures that it has always complied with the laws of the countries in which it operates and that it will study both the impact that its inclusion in the aforementioned list will have and actions to “protect the interests of the company and its shareholders “.
“The company reiterates that it provides products and services for civil and commercial uses, and confirms that it is neither owned nor controlled or affiliated with the Chinese Army,” the document said.
The aforementioned list includes companies considered by Washington as controlled by the Chinese Armed Forces and, according to a decree signed yesterday by the outgoing US president, Donald Trump, American investors must dispose of their stakes in those companies.
In November 2020, Trump had signed another order prohibiting share purchases of listed firms as of January 11 of this year.
The new decree was announced after the New York Stock Exchange, which had reported earlier this month the exclusion of state-owned telephone operators China Mobile, China Telecom and China Unicom from Wall Street, reversed its decision to return to push the initial plan in a matter of days due to confusion about how to apply the new regulations.
The intention of the Department of Defense, which describes these companies as “military companies of communist China”, is “to counteract the strategy of military-civil fusion” of Beijing, which supposedly tries to modernize the military capabilities of the Asian country with technology and knowledge obtained by “companies, universities and research programs that appear to be civil entities”.
The latest update of the list, published yesterday, also includes the China Commercial Aircraft Corporation (COMAC), developer of the C919, the first medium-size commercial aircraft manufactured in the country, which aims to become a competitor of Boeing aircraft and Airbus.
Other firms that were previously defined as affiliated with the Chinese Army include technology company Huawei, video surveillance equipment manufacturer Hikvision, chip producer SMIC, and several state-owned firms from key sectors such as aerospace, nuclear, energy or the telecommunications.
According to sources quoted by the Hong Kong newspaper South China Morning Post, Washington would have also considered including digital giants such as Alibaba, Tencent or Baidu, but it was finally ruled out.

More from Author Ben Oakley here: https://globelivemedia.com/author/ben-oakley/