The United States has hired Chinese smartphone maker Xiaomi. The U.S. government described Shawmi as a "Communist Chinese military company" and blacklisted it. With the blacklist, American citizens could no longer invest in Xiaomi. The United States has previously taken similar action against Chinese companies.
The United States has already blacklisted some companies, such as Huawei.Xiaomi has also been added to this list. The government bans US-based securities and investment companies from investing in blacklisted companies. The U.S. government has made it clear that US investors will not fund the Chinese military following the move.
China is exploiting American investors to finance their military development and modernization. American investors who trade on public stock exchanges in the US and abroad are investing in Chinese military companies. Government sources said the companies were blacklisted to prevent this Xiaomi responded that it was surprising that the US government had blacklisted Xiaomi. Xiaomi is the third largest smartphone maker in the world. It is reported that this incident will affect the smartphone market. This is particularly likely to affect the smartphone market, which is dominated by Chinese companies. Xiaomi has clear dominance in India. But Samsung and Apple dominate the US market, behind the Chinese companies Xiaomi and OnePlus.
Xiaomi said its businesses operate in accordance with the laws and regulations of their respective countries. A spokesman for Shawmi said the company was not owned, controlled or affiliated by the Chinese military and was not a "communist Chinese military company" as defined by the NDA [National Defense Authorization Act].
A lot of things are going to change in America. The Biden government will come to power in a week. There are indications that the Biden administration will take steps to ease tensions between the US and China. Therefore, it is likely that Xiaomi will be blacklisted soon.
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