The Trump administration has just put Xiaomi on the blacklist, along with Huawei. A decision that could seriously complicate the international development of the young Chinese company.
UPDATE | 01/15/2021 AT 3:26 PM
Xiaomi statement: * “Xiaomi has complied with the law and operated in accordance with the laws and regulations of the jurisdictions in which it operates. The company 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” defined in the NDAA. The company will take appropriate measures to protect the interests of the company and its shareholders. “*
On January 20, Joe Biden will officially become the President of the United States. In the meantime, Chinese companies can continue to tremble, because in his Oval Office, Donald Trump continues his trade war with the Middle Kingdom. This Thursday, January 14, the current administration added nine Chinese companies to its blacklist, on which Huawei is already listed because of its alleged links with the People’s Army. And among the new names is Xiaomi, the consumer electronics giant, for whom the trouble is starting.
The Trump administration issued an executive order in November prohibiting Americans from investing in Chinese companies on this list, requiring them to sell their shares by November 11, 2021. As a result, the share price of the Chinese smartphone maker fell more than 10% on Friday at the opening of the Hong Kong Stock Exchange.
For Xiaomi, being placed on this blacklist means that companies across the Atlantic will no longer be able to provide it with technology. Ultimately, unless a policy change decided by Joe Biden, the company could for example no longer be able to source chips from Qualcomm. Bad news also for US firms which would thus be deprived of two of the biggest sellers of mobile phones on the market. It is also possible that Google will no longer be able to deliver its services to Xiaomi, as is the case for Huawei, and that the manufacturer will have to go through the development of its app store.
A few days before the end of his mandate, Donald Trump is particularly aggressive with Chinese tech. On January 6 , its administration indicated that several Chinese payment applications were going to be banned from the United States, including the very popular Alipay and WeChat Pay.