The outgoing Trump Administration has blacklisted the smartphone maker Xiaomi for ties with the Chinese military. Xiaomi is among 9 companies that have been added to the list of Chinese military companies of the Defense Department. It must be noted that Xiaomi surpassed Apple in terms of smartphone sales in the third quarter. With this, these companies will be banned from American investment. Also, American investors will not be able to buy shares of all these companies. As a result of a recent order signed by the outgoing president, investors owning any shares of these companies are required to sell them before November 11, 2021.
While announcing the update list, the Defence Department said that it is committed to counter the Military-Civil Fusion development strategy of the People’s Republic of China (PRC). The Defence Department said that it help the People’s Liberation Army (PLA) to have access to advanced technologies. “This is done by means of companies and universities who conduct programs that look to civilian.” However, Xiaomi has time and again denied these connections. The smartphone maker reiterated that it will take all necessary steps to safeguard the company and its shareholders. “Xiaomi reiterates that it provides services to civilians and gives products for commercial use. The company would like to assure you that it is neither owned nor controlled by the Chinese military.”
Chinese foreign ministry has firmly opposed the new sanctions and said that the move is against the international economic trade rules. “It is totally against the trend of the times.” Later, China’s Ministry of Commerce said that the United States was using all means to suppress Chinese companies. The Ministry also urged America to correct its wrongdoings. The announcement comes close on the heels of the decision to ban 60 Chinese companies. The decision is likely to increase tensions between the two countries. The will become one of the major challenges for the incoming Biden administration which has so far not reacted to the development.
