Lately, the US Government added Xiaomi to its blacklist because they accused them of a “Communist Chinese Military Company”. Trump administration mentioned nine Chinese firms to an investment blacklist including Xiaomi. Even Trump is no longer the President of the United States, the investment ban remains. Then after weeks, Xiaomi responded by suing the U.S Defense and Treasury department to invert the banning order.
Also, Xiaomi’s secretary Janet Yellen considered the accusation to the company as “unlawful and unconstitutional”. The company also said that they’re not controlled by the People’s Liberation Army of China. Besides, they did not provide any evidence that the company is truly associated with the Chinese Military.
The company also says that if they associated with the military, it will only destroy its reputation with its partners. Moreover, a various number of their investors are from the United States that matters to them because they contributed a lot.
Therefore, we shall wait for the answer of the US Government on what Xiaomi responded. With the new Biden administration, we should expect changes in these issues including the Huawei ban.
Source: Bloomberg
