Xiaomi is a popular Chinese smartphone manufacturer. One of the other popular Chinese company was Huawei. Due to the US Ban, Huawei is suffering. They cannot buy and sell in the US. They cannot use Google services either, making it very hard for them to survive. Now, a report has arrived that Xiaomi was included in a blacklist from the U.S. Government.
On Thursday, a total of nine Chinese companies were added to US Blacklist. And one of the companies included Xiaomi. Trump Administration banned a lot of Chinese apps in the past few years just like Huawei. So why was Xiaomi blacklisted? Well, Xiaomi was added to a blacklist because they apparently think that Xiaomi has connections with the Chinese Military.
Consequences Of Xiaomi Blacklist
No, it isn’t like the Huawei ban. But being on the blacklist, US investors can no longer invest in Xiaomi. The existing US investors will have to sell all of their Xiaomi stock by November 11, 2021. Xiaomi can still buy equipment and material from US companies. On the negative side, Xiaomi’s stock is going to drop. The Chinese tech giant is going to lose a lot of its liquid capital
Xiaomi’s reply on blacklist
The company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The company reiterates that it provides products and services for civilian and commercial use. The company confirms that it is not owned, controlled, or affiliated with the Chinese military, and is not a “Communist Chinese Military Company” defined under the NDAA. The company will take appropriate course of actions to protect the interests of the company and its shareholders.
The company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The company will make further announcements as and when appropriate.
Now time will tell what happens to Xiaomi. The company has been performing very well in the past few years and is known as the world’s third-largest smartphone manufacturer. With its Redmi lineup, they promise cheap Android phones which are feature-rich. We hope that Xiaomi’s scenario doesn’t go bad like Huawei.