Trump administration lists Xiaomi among the blacklisted 'Communist Chinese military companies'
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Trump administration, on Thursday, added Xiaomi to a blacklist of 'military companies'. The Department of Defence, United States has called it a 'Communist Chinese military company'.
"The Department is determined to highlight and counter the People's Republic of China's (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People's Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities." The Department of Defence said in its statement.
According to Reuters, The companies will be subject to a new U.S. investment ban which forces American investors to divest their holdings of the blacklisted firms by Nov. 11, 2021.
Earlier, the Trump administration had blacklisted smartphone company Huawei and the world's largest drone maker DJI.
It is also very likely that the Biden government, which is all set to take office on 20 January, overturns this decision. However, it remains to be seen how Xiaomi and other Chinese companies respond to this unexpected blacklisting.
Other companies added to the blacklist include Luokong Technology Corp., Gowin Semiconductor Corp. and Global Tone Communication Technology Co. Advanced Micro-Fabrication Equipment Inc.
