Xiaomi gets blacklisted in the U.S. by Trump administration
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UPDATE:Xiaomi got in touch with us today to deliver an official statement about allegations made by the Trump administration claiming that Xiaomi has ties to the Chinese military. The statement says, "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 our stakeholders." With the Biden administration now in control, it is too early to determine whether the U.S. will take a friendlier approach to Chinese manufacturers like Xiaomi, Huawei, ZTE and others.
U.S. investors are forced to sell its holdings in Xiaomi by next November
U.S. investors must sell their holdings of any of the companies being blacklisted by November 11th, 2021. Xiaomi's shares trade Over the Counter in the states in the form of American Depository Receipts (ADR). They fell today by 7.54% or $1.61 to close at $19.75 in the wake of this news. Reuters was able to view a document that listed the nine Chinese companies added to the blacklist and in addition to Xiaomi, it included plane manufacturer Comac.

The U.S. puts Xiaomi on a blacklist forcing Americans to divest their investments in the company
During Mr. Trump's four years as president, he placed Chinese phone and networking firm ZTE on the Entity List for failing to follow punishments placed on it by the U.S. Commerce Department. As a result, the company was not allowed to buy parts from its U.S. supply chain leaving ZTE in trouble. With the latter close to shutting its doors, ZTE was saved by someone you would have never expected. President Trump, surprisingly, sent out a tweet stating that too many ZTE workers in China had lost their jobs. The president wrote that he had directed the Commerce Department to help ZTE get back to business. "Too many jobs in China lost," tweeted Trump. Eventually, the U.S. and ZTE reached a settlement and the company once again was manufacturing smartphones.
Trump cited security as the reason for placing Huawei on the Entity List. The company is said to have ties to the Communist Chinese government. And exactly one year after banning Huawei from its U.S. suppliers, the Commerce Department ruled that foundries creating cutting-edge chips using American technology cannot ship these components to Huawei without permission from the U.S. This change alone forced Huawei to sell its Honor sub-brand and analysts expect Huawei to drop from the second largest smartphone manufacturer last year to number seven this year.
A U.S. law passed in 1999 forces the Defense Department to create a list of companies owned or controlled by the Chinese military. The Pentagon has put 35 names on this list including China's top chipmaker SMIC and its oil giant CNOOC.
The big question is whether incoming President Joe Biden will reverse all of the new rules and Entity List placements initiated by his predecessor against Chinese companies.
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