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United States adds Xiaomi to investment blacklist

united-states-adds-xiaomi-investment-blacklist-noypigeeks-5235

The United States Department of Defense, under the outgoing president Donald Trump, puts out a list of nine Chinese companies to an investment blacklist. Part of that list is Xiaomi, one of the biggest tech companies in the market today.

Xiaomi and the other eight are being accused of being part of the Communist Chinese military companies, operating directly or indirectly within the U.S.

This is under Section 1237 of the National Defense Authorization Act for Fiscal Year 1999.

It states that Communist Chinese military companies are described as “any person identified in the Defense Intelligence Agency publication numbered VP-1920-271-90, dated September 1990, or PC-1921-57-95, dated October 1995, and any update of those publications for the purposes of this section”.

Also, “any other person that–(i) is owned or controlled by the People’s Liberation Army; and (ii) is engaged in providing commercial services, manufacturing, producing, or exporting.”

So, what does being part of the investment blacklist mean? Essentially, American investors will be prohibited from investing in them.

In this case, those who already invested in Xiaomi and any of the other eight companies will have to divest their holdings by November 11, 2021. This complies with Trump’s executive order on November 2020 that bans Americans from investing in companies on DOD’s list.

But unlike Huawei’s fate, Xiaomi is not banned from working with U.S.-based companies right away. Not unless they are put in the U.S. Commerce Department’s Entity List.

Hours after the announcement, Xiaomi has released a statement on its Facebook Page. It clarifies that they have complied with the law and the laws and regulations of the places it conducts business with.

They also confirm that they are not owned, controlled, or affiliated with the Chinese military and are not a Communist Chinese Military Company. You can read the full statement below.

united-states-adds-xiaomi-investment-blacklist-noypigeeks-5234
Via Xiaomi Facebook Page

Via: XDA Developers

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