Xiaomi is on a similar “black list” as Huawei

Just a few hours ago, Donald Trump announced an investment ban for Xiaomi and 8 other Chinese companies. They have officially added them to the same list that Huawei has been on for almost two years. Xiaomi, the world’s third-largest smartphone maker, has been accused of supporting the Chinese military.

Updated 1/16/2020:

Despite many doubts about the future of the Xiaomi brand, the Xiaomi Adictos website claims that the media is making a lot more fuss about this report than it should. The Chinese giant Xiaomi, unlike Huawei, was included in a slightly different “black list”, which is not under the auspices of the US Department of Commerce. In other words, Xiaomi will not become the same as what happened to Huawei.

The inclusion took place on a document created by the US Department of Defense. Quite a number of other companies also passed through this list, and it did not have any significant impact on their existence. It is the Ministry of Defense that suspects that Xiaomi is communicating more closely with the Chinese military and could be a potential danger to the United States. So we emphasize again that Xiaomi will most likely not see a similar fate as the rival Huawei.

Continuation of the original article:

XDA explains the specific allegation, but does not see any serious misrepresentation in it. This is section 1237 of the National Defense Authorization Act 1999. It defines “Communist China Military Societies” as follows: Any entity identified by the Defense Intelligence Agency as VP-1920-271-90 or PC-1921-57-95 or any newer designation defined for updating this paragraph. It further defines “any other person who is owned or controlled by the People’s Liberation Army and is engaged in the provision of commercial services, production or export.” However, it is not clear how Xiaomi, which mostly only produces consumer products, fits into this definition.

Donald Trump goes against Xiaomi: Does the same fate await him as Huawei?

The US government has also given a condition to US investors who have invested in Xiaomi and other companies to cancel their investments by November this year, Gizmochina recalls. The Trump administration has not yet provided any evidence on which to rely on any cooperation with the Chinese military.

Xiaomi’s ban was very unexpected, as it is only a manufacturer of smartphones and electronics. Until now, the Trump administration has focused only on key areas, such as telecommunications (Huawei) or semiconductors (SMIC). Together, this list has 60 Chinese companies, which also includes the famous drone manufacturer DJI.

By the way, Xiaomi is still on the “milder” list than Huawei or DJI. They are banned from supplying their products to the American market, which is not yet a threat for Xiaomi. Xiaomi can still import its products into the United States. If it were the same list as Huawei, Xiaomi would also be banned from trading with American companies. This would mean the loss of Google services and US processors (Qualcomm), as in the case of Huawei.

Fortunately, Xiaomi had plenty of time to prepare. “In any case, if something happens in the future, we have a plan B. Among other things, we invest heavily in various processor manufacturers in China, but we believe that our business practices will not be affected by political decisions. So far, we’ve done everything we can to put the best parts in our phones, and we plan to continue to do so in the future, ”said Abi Go, Xiaomi’s global product manager, last year.

With Donald Trump and his administration in office for only 5 days, it is possible that these latest steps will be reversed by new President Joe Biden. Until then, however, we will be watching how Xiaomi and possibly China as a whole reacts to this ban.

Xiaomi’s statement

We have discovered the official statement of Xiaomi, which she provided on her blog:

“Our company always complies with the applicable regulations and laws of the countries in which it operates. The company emphasizes that it provides products and services for civil and commercial use.

Xiaomi confirms that it is not owned, controlled, or affiliated in any way with the Chinese military, nor is it a “Communist China Military Society,” as defined by the NDAA. The Company is taking legal action to protect its interests and the interests of stakeholders.

The company will issue further statements as necessary. “