Developments have taken place in Xiaomi’s smartphone company. The thing is that Donal Trump has aimed Chinese companies in his crosshairs just like Tencent. This time Trump has targeted Xiaomi and we can say that there will be a problem for the company. There are certain actions that are taken by the Trump organization. This has proven to be quite harmful to the smartphone giant. The thing is that Trump thinks that these companies have ties to the Chinese military and that soon the US needs to cut ties with said organizations.
More About Xiaomi’s Statement and The US Blacklist:
The US has blacklisted many potential investors from investing in any kind of money in Xiaomi. Also, there will be no deals with the company. This means that the organization cannot have any investor on board from the USA. This is why there are raising concerns against this decision by the government of the USA.
While the Trump organization is ready to blacklist Xiaomi, the company has another story to tell:
“The company has been in compliance with the 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. Xiaomi will take the appropriate course of action 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. Also, the company will make further announcements as and when appropriate.”
With so many things in store for the year 2021, we should expect the Biden administration to resolve such issues. As of now, the Trump administration has blacklisted over 9 companies. This blacklist has been in existence since the year 1999 and since then, this list has been not cared about much until Trump added the stipulation of banning investors from investing in the companies on the list.
This is where Xiaomi is in the problem. According to the Trump administration, the Chinese company has so closely-knit ties with the Chinese government that it poses a threat to the US.