Under outgoing President Trump, the Department of Defence has put nine Chinese companies on a blacklist, saying they have military connections. In what has come across as a surprising move, tech giant Xiaomi is included on the list.
The blacklist prevents US citizens and companies from investing in the firms. It is different from the trade ban in Huawei, where Americans were blocked from doing business with the tech company. Xiaomi is not barred from using important things like Android, Qualcomm chips or the Play Store.
The terms of the new ban also allow the commerce department to block the import of ‘sensitive technology’ from China or any other nation.
The new order specifically said that US investors like the chip company Qualcomm would be forced to divest their stake by November 11.
Xiaomi grew to be the third-largest smartphone manufacturer by overtaking Apple in 2020. It will not have any concerns about the supply chain management of components acquisition any time soon. Trump’s administration has been on a banning spree, putting Chinese device companies on blacklists.
The administration banned Huawei and ZTE a while back, before banning DJI, the drone making company, in December.