January 15, 2021
The United States included the Chinese technology company Xiaomi on a blacklist of foreign companies subject to severe restrictions, including a ban on receiving US investment. The reason why Xiaomi and eight other Chinese companies have been blacklisted is that according to the United States Department of Defense they would have connections with the Chinese military, with which they would collaborate by providing advanced technologies and advice.
The measure involves the prohibition of US investors from buying shares or financial securities of these companies. “The People’s Republic of China is increasingly exploiting the capital resources of the United States to feed and enable the development and modernization of the military, intelligence and other security apparatuses.”says the outgoing president on the provision that forces investors to divest or sell, with respect to designated companies.
According to the global market analysis firm Counterpoint:
Xiaomi was the world’s third-largest smartphone maker in Q3 2020, with 46.2 million units produced and a 13% share, surpassing Apple for the first time. At the opening of operations, Xiaomi’s prices marked a 10% drop on the Hong Kong Stock Exchange, explains Cnbc. The blacklist also includes another Chinese tech giant like Huawei. However, it should be noted that Xiaomi has not been added to the Entities list, which prohibits US companies from trading semiconductor materials and technologies with designated companies, such as Shenzhen company itself.
Xiaomi’s smartphones, for example, are based on chips from the American company Qualcomm and it is not clear to what extent the blacklist can affect the ability to assemble components. The company, which posted 46% and 75% year-on-year growth compared to the second quarter, could still continue production and denies the allegations. “We are not connected, controlled or affiliated with the Chinese military, we will take appropriate measures to protect the interests of the company and its shareholders”he declared from Beijing.
Source: Anche Xiaomi finisce nella list nera di Trump – Wired
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