The Trump administration blacks out Xiaomi
The Trump administration blacks out Xiaomi

The Trump administration has decided to blacklist the Chinese electronics giant Xiaomi, the world's third largest cell phone manufacturer.

The US Department of Defense now refers to Xiaomi as a military subsidiary of the Chinese Communist Party, which means that it is now subject to Trump's Executive Order prohibiting US investment in such companies.

The executive order may force US companies and other American investors to withdraw from Xiaomi's internal investments before November 11, 2021.

Xiaomi confirmed in a statement that it is operating in accordance with the laws and regulations of the country in which it operates.

The spokesperson claimed that Xiaomi is not a member of the Chinese army, the Chinese army or the military companies of the Communist Party of China named under the National Defense Forces Act.

Xiaomi said: Before he does anything, he is studying the possible consequences of this move by the US Department of Defense.

While the Biden administration may revoke the decree prior to this date, it is interesting that electronics companies like Xiaomi have been blacklisted.

Most of the other companies blacklisted by the U.S. Department of Defense are more industry-oriented, specializing in space, aviation, shipbuilding, chemistry, communications, construction, and other forms of infrastructure building.

The Trump administration also put Huawei, the world's second-largest cell phone maker, at the top of the list, but Huawei also makes large-scale communications devices.

Members of the US Congress are particularly concerned about Huawei's integration into the country's cellular infrastructure.

According to reports, this list differs from the US Commerce Department's Entity List, which typically prohibits US companies from exporting technology to blacklisted companies (such as DJI's UAV manufacturers).

Some Chinese companies like Huawei and SMIC are now on the list.

The growing blacklist is part of President Trump's attempt to cement his difficult legacy against China in the final days of his presidency.

The Pentagon has only begun compliance this year. So far, 35 companies have joined them, including the oil giant CNOOC and China's chip maker SMIC. Xiaomi is now listed as well.

The US Commerce Department is working to prevent the six countries now classified as foreign enemies from providing communications equipment to the United States, including China, Russia, Iran and North Korea. And Cuba and the Maduro government in Venezuela (Nicolas Maduro).

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