After tightening its clamps on Huawei and effectively pushing it out of the picture, the US government is now going after other Chinese companies. On Thursday, the US administration added nine Chinese firms to its blacklist of companies on account of having ties with the Chinese military.
The list also includes Xiaomi, the world’s third-largest Smartphone maker. Following this act, US investors can no longer invest in the companies added to this special blacklist. The investors are prohibited from purchasing shares and securities of companies like Xiaomi and will have to liquidate their existing holdings in the blacklisted companies by 11th November 2021.
So far, the administration has not given any proof as to how Xiaomi or other companies are tied to the Chinese military. Initially, the US government was adamant about blacklisting companies from crucial industries like telecommunications and semiconductor technology. Hence blacklisting Xiaomi was rather sudden considering that it is a smartphone and electronics manufacturer.
Nevertheless, the blacklist is not the same as the US entity list. Hence, for now, Xiaomi is allowed to import US technology without a license but we don’t know when that might change.
Moreover, since the Biden administration is set to take power by 20th January, things might change for good, even for Huawei.
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