(Photo: Xiaomi)
Chinese electronics company Xiaomi has been added to a blacklist by the US Department of Defense following its classification as a Communist Chinese military company.
As CNBC reports, Xiaomi is one of nine new companies added to the list in accordance with the statutory requirement of Section 1237 of the National Defense Authorization Act for Fiscal Year 1999, as amended. The Department of Defense press release explains how this is part of its ongoing work to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities.
After Huawei and ZTE, the US government has now taken on the Chinese conglomerate Xiaomi, blacklisting it as a "Communist Chinese military company". Xiaomis stock nosedived more than 10 per cent in early Friday trading after the news .
Xiaomi is also vulnerable to Trump s executive order.
Order bans US firms from investing in such companies.
New Delhi: After Huawei and ZTE, the US government has now taken on the Chinese conglomerate Xiaomi, blacklisting it as a Communist Chinese military company .
In a fresh list, the US Department of Defense has targeted Xiaomi, which means that the company is also vulnerable to the outgoing President Donald Trump s executive order that bans the US firms from investing in such companies.
The move may force US companies and other investors to divest in Xiaomi this year. The Department is determined to highlight and counter the People s Republic of China s (PRC) Military-Civil Fusion development strategy, which supports the modernisation goals of the People s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programmes that appear to be civilian entities, the Dep
The Trump administration has added Xiaomi to the US military list under the National Defense Authorization Act of 1999. “The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities.” Xiaomi, however, denies its connection to the Chinese military and said that it will take steps to protect the company and its shareholders.
After the US government blacklisted Chinese conglomerate Xiaomi as a "Communist Chinese military company", the company on Friday said it is reviewing the potential consequences to develop a fuller understanding of its impact on the .