With about five days left in office, it seems that President Trump isn’t sitting back against U.S.-China trade war and the latest victim now happens to be Xiaomi. The Chinese tech and electronics giant has now been designated by the Trump administration as a “Chinese Communist military company.” Even if one didn’t know what that means, you can definitely tell it’s not a good thing in the eyes of the U.S. government.
This means that the firm is now vulnerable to Trump’s executive order that lets him ban the U.S. from investing in such companies.
Of course, all this sounds quite familiar as it is the same thing that happened to Huawei. Since 2019, the company has not been able to trade with U.S. companies. This resulted in its smartphones division being adversely affected as the devices lacked Google services. Consequently, business across the globe literally sprawled to the floor.
As it stands, reports are already coming out about the decline in Xiaomi’s stock as a result of the current events. Xiaomi has still not given any official statement about all this although it is inevitable that they will soon.
Although it is expected for the incoming Biden administration to overturn this ban, it is certainly surprising to see Xiaomi join Huawei on the blacklist. Huawei’s telecommunications division was one of the main causes of having the company banned. On the other hand, Xiaomi is just an electronics company and sin;t as industrially oriented as Huawei.
However, you should know that this list isn’t the same as the “entity list” from the U.S. Commerce Department. In that list, U.S. companies are usually prohibited from exporting tech to companies on it. The likes of Huawei are on both lists now but not Xiaomi.