Xiaomi blacklisted in the United States: what future for the manufacturer?
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The Trump administration has just placed the Chinese manufacturer Xiaomi on the military blacklist. A situation compared to Huawei which for the moment does not yet threaten the future of the brand.
As President Donald Trump prepares to let his successor Joe Biden take the lead, a number of new decisions are being made. A few days ago, the administration of the outgoing president had already placed companies like WeChat or AliPay on the military blacklist. It is now the Chinese manufacturer Xiaomi who was placed on this list this Thursday evening. The brand is now considered a “Communist China Military Enterprise”. The situation seems to make one think of that experienced by Huawei but which is very different. For its part, the manufacturer defends itself against the accusations made by a press release.
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What future for Xiaomi in the United States and in the West?
Since Thursday, the Chinese brand has been on a military blacklist alongside other companies such as Huawei. This means that the US government considers Xiaomi to be in Beijing’s pay, putting US national interests at risk. This will force a citizen living in the United States to withdraw his investments within the box. The deadline is until November 11, 2021 under pain of financial penalties. For now, the only concrete action that this decision has generated is the fall of 10% on the stock market share of the manufacturer.
– Xiaomi (@Xiaomi) January 15, 2021
At present, Xiaomi’s situation is not similar to Huawei. The latter is thus still able to operate Android and use Qualcomm chips. As you will have understood, the short-term future is not threatening for the manufacturer. It sounds like the ultimate snub against Joe Biden. Indeed, the new American president will have to extricate himself from thorny relations with his Chinese counterpart. For its part, the manufacturer reacted with a press release:
“Xiaomi recalls that it provides products and services for civil and commercial use. The company confirms that it is not owned, controlled or affiliated with the Chinese military and that it is not a “Chinese Communist Military Company” within the meaning of the NDAA. The company will take appropriate measures to protect the interests of the company and its shareholders ”
It will now be necessary to be patient to see what the evolutions will be.
Source: Reuters
