comscore Xiaomi blacklisted in the US for links with Chinese military: What it means
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Xiaomi blacklisted in the US, denies connection with the Chinese military

The US government on Thursday blacklisted nine Chinese companies including Xiaomi. The administration said that these companies had ties with the Chinese military.

Xiaomi

The US government on Thursday in a surprise move blacklisted nine Chinese companies including the very popular smartphone brand globally, Xiaomi. The US administration announced that these Chinese companies had ties with the Chinese military. This definitely isn’t good news for the brand. According to a Garter report, Xiaomi overtook Apple to become the world’s no. 3 smartphone maker by sales in the third quarter of 2020. Also Read - This Qualcomm chip bug affects around 30 percent of phones globally: Report

To recall, earlier this month the US Govt blacklisted 60 Chinese companies due to their links with the Chinese military. Commenting on the matter, US Commerce Secretary Wilbur Ross said, “China’s reckless and belligerent actions in the South China Sea and its aggressive push to acquire sensitive intellectual property and technology for its militarisation efforts are a threat to US national security and the security of the international community,” Also Read - MIUI 13 release on June 25: Xiaomi, Redmi, Poco phones to get, not get the update

Xiaomi comments

Here’s what a Xiaomi spokesperson told BGR.in in an email statement. Also Read - Best Mother's Day tech-based gifts to consider in 2021: Robot vacuum cleaner, earphones, iPad and more

“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 spokesperson further said, “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.”

Let’s explain why Xiaomi has been blacklisted in the United States, what it means for you and whether you should be worried or not.

Why is Xiaomi blacklisted in the US?

On Thursday, the Department of Defense in the United States blacklisted nine Chinese companies for alleged Chinese military links. The companies include Xiaomi, Commercial Aircraft of China (Comac), Semiconductor Manufacturing International Corp, China National Offshore Oil Corp, Luokong Technology Corp, Gowin Semiconductor Corp, and Global Tone Communication Technology Co, Advanced Micro-Fabrication Equipment Inc.

Xiaomi blacklisted: What it means, should you worry?

Now that the US Govt’s Defense Department and Commerce Department have blacklisted these Chinese companies, investors will be mandated to sell their investments in these firms by November. Additionally, no American will be allowed to invest in the blacklisted companies or even have any formal relations.

Sadly, as soon as the news of Xiaomi blacklist broke in the US, the company’s share prices dropped by 11 percent. This is definitely a setback for the Chinese smartphone brand and its expansion plans in the United States.

The blacklisting of Xiaomi in the US will not impact Indian consumers in any way. So, there’s no need to worry.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: January 15, 2021 2:48 PM IST
  • Updated Date: January 15, 2021 3:22 PM IST



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