United States blacklist Xiaomi: these are the consequences

January 16, 2021 Luisa Rey

After Huawei was previously blacklisted by the US, Xiaomi is now screwed. The company is on a military blacklist and that could have consequences, although these are clearly less serious than with Huawei.

Xiaomi blacklisted

The United States is less and less interested in Chinese companies. This is evident from the fact that Huawei has been on a blacklist for almost two years. This prevents the company from doing business with US companies, which in turn results in smartphones without Google services. It has now become known that the US Department of Defense (DoD) has put Xiaomi on its military blacklist.

The fact that Xiaomi has now been included on this list means that American investors are no longer allowed to invest in the Chinese manufacturer. Companies listed are considered a “Communist Chinese Military Company.” Those who still have shares in Xiaomi must sell them before November 2021, according to the relevant measure adopted by Xiaomi in November last year.

The situation between America and Xiaomi is different from the one with Huawei. American companies are still allowed to work together, although Xiaomi will now miss the fact that less money is coming in. Qualcomm, among others, is an investor in the manufacturer. The reason Xiaomi has been listed is not known. It may well be that it is a new pressure medium. For now nothing will change for the consumer.

In a response, Xiaomi says that it may have a plan B ready, should something happen in the future. In addition, the manufacturer states that it is not under control or affiliated with the Chinese army. Xiaomi is the number 3 smartphone manufacturer worldwide, after Samsung and Huawei.