Chinese smartphone maker Xiaomi has joined the Trump administration’s defense blacklist. The Pentagon added nine companies, including Xiaomi, to China’s list of suspected military companies on January 14.
According to market research firm IDC, Xiaomi was the world’s third-largest smartphone maker as of the third quarter of 2020, surpassing Apple to become the third-largest after Samsung and Huawei. ing.
President Donald Trump signed an executive order in November 2020 banning investment in companies that support the activities of China’s military, intelligence and security agencies, and will come into force in January 2021. It was. Huawei, China’s leading chip maker SMIC, and China’s three major carriers are on the list.
The defense blacklist is different from the US Department of Commerce’s entity list (embargo list). The latter list is known for separating Huawei, DJI, SenseTime and other Chinese tech companies from US suppliers due to national security concerns.
A spokeswoman for Xiaomi said in a statement, “We are not owned, controlled or affiliated with the Chinese military, and are not affiliated with the military, the National Defense Authorization Act (NDAA). We make sure that it is not a “communist Chinese military company” as defined in. We will take appropriate action to protect the interests of the company and its shareholders. ”
Like the entity list, the US government’s defense blacklist is causing confusion over compliance. The New York Stock Exchange (NYSE) has made three turns following sanctions against China Mobile, China Unicom, and China Telecom. Initially, it announced that it would delist three Chinese carriers, and after discussions with regulators, it decided to withdraw the delisting, but it was finally overturned, and after further examination, it was listed. I decided to abolish it.
A Xiaomi representative said: “We are considering the potential impacts to better understand the impacts of this impact on the Group. We will make further announcements at the appropriate time.”
Xiaomi is listed in Hong Kong, and the executive order gave U.S. investors its shares, which fell by more than 11% on the blacklist announcement, dropping to $ 29 per share. May force you to sell.
Xiaomi’s operations and tech access haven’t been affected in the latest round of US government attacks, but a supply chain ban could be a Damocles sword (a sword of urgency). The company has a close partnership with Qualcomm to get the first high-end Snapdragon 888 chip. Huawei circumvented the restrictions imposed by the entity list and spun out the cheap phone unit Honor to save its supply chain. After Joe Biden takes office, how he will tackle the policy towards Chinese tech giants during the Trump administration will continue to be watched.
・ Trump administration adds China’s largest semiconductor maker SMIC to defense blacklist
・ New York Stock Exchange withdraws plans to delist three major Chinese telecommunications companies
・ Finally, the New York Stock Exchange delisted three major Chinese telecommunications companies
· US Department of Commerce adds 46 Huawei companies worldwide to sanctions list
・ DJI, the largest drone, is on the U.S. Department of Commerce’s embargo list
・ Eight Chinese companies involved in human rights violations against Muslim minorities are on the U.S. Department of Commerce’s ban list
・ Huawei sells Honor division of low-priced smartphones to a consortium consisting of government-affiliated companies.
More from Author Rachel Maga here: https://globelivemedia.com/author/rachel-maga/
Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.