April 24, 2024

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Xiaomi included to U.S. blacklist of Chinese armed forces providers

2 min read

Xiaomi’s Headquarters

Getty Photographs

GUANGZHOU, China — The Trump administration has included smartphone maker Xiaomi to a blacklist of alleged Chinese armed service corporations.

Hong Kong-shown shares of the Chinese firm were being down 10.6% at the open on Friday on that news.

Beijing-primarily based Xiaomi was the world’s 3rd-greatest smartphone maker in the third quarter of 2020, in accordance to Counterpoint Study.

The go signifies that Xiaomi is now subject to a November executive buy restricting American traders from buying shares or linked securities of any organizations designated by the Office of Defense to be a Chinese army business.

Trump’s original executive buy was subsequently expanded to drive investors to divest, or market out, of impacted holdings, by Nov. 11 this year.

Xiaomi was not straight away obtainable for comment when contacted by CNBC.

The business is outlined in Hong Kong and not in the U.S.

“The Section is identified to spotlight and counter the People’s Republic of China’s (PRC) Army-Civil Fusion growth tactic, which supports the modernization plans of the People’s Liberation Army (PLA) by ensuring its accessibility to innovative technologies and experience acquired and designed by even individuals PRC organizations, universities, and research programs that show up to be civilian entities,” the DOD explained in a assertion.

Xiaomi is a person of nine entities designated as “Communist Chinese navy companies.” Comac, a Chinese plane manufacturer, is also on the checklist.

The DOD produced its preliminary record of organizations in June 2020. Corporations this kind of as Chinese know-how huge Huawei and semiconductor manufacturer SMIC, are also on the record.

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