Xiaomi added to military blacklist by Trump administration

Consumer electronics company and drone maker Xiaomi has been added to the military blacklist, i.e. a list of companies with suspected ties to the Chinese army, by the Trump administration.

Xiaomi added to military blacklist by Trump administration

On Thursday, the Trump administration added nine Chinese companies, including drone maker Xiaomi and planemaker Comac, to the military blacklist.

The companies will be subject to a new U.S. investment ban which forces American investors to divest their holdings of the blacklisted firms by Nov. 11, 2021, according to Reuters.

It is not clear where the allegations come from, however, it is a concerning development. Right before Christmas last year, DJI was added to the Entity List over human rights concerns, by the U.S. Commerce Department.

Xiaomi provided a statement to Android Central and explained that the drone maker and consumer electronics company is not affiliated with the Chinese military. It reads:

The Company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The Company reiterates that it provides products and services for civilian and commercial use.

 

The Company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not a “Communist Chinese Military Company” defined under the NDAA. The Company will take appropriate course of actions to protect the interests of the Company and its shareholders.

 

The Company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The Company will make further announcements as and when appropriate.

The addition of Xiaomi to the military blacklist, currently only affects investors and it does not prevent other companies to export to Xiaomi as is the case with DJI. At the same time, however, it is not a good sign for the trade relationship between China and the United States. With the Trump administration quickly running out of time, it does make you wonder is the next administration will revert any of these actions or that they’re here to stay for the time being.

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