Another big tech Chinese company operating in the United States has been recently added to the blacklist. Smartphone maker Xiaomi has become the latest tech giant to fall prey to the Trump administration's blacklist. The Department of Defense added nine companies to its list of firms with alleged ties to the Chinese military.
Following this decision, the company's shares collapsed by more than 10%. Apparently, this is just the beginning. Now, Xiaomi is subject to the decree of former US President Donald Trump. Any investment in such companies is prohibited which means that the Xiaomi stocks are likely to extend losses. Besides, US investors will have to divest their stakes in Xiaomi.
Such a decision came as a surprise to Xiaomi, especially ahead of the change of power in the United States. Although the Department of State assures that adding nine companies, including Xiaomi, to the blacklist is likely to be its last expansion under the current presidential administration, it does not really brighten prospects for Chinese firms in the US market.
"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 pinpointed.
