Xiaomi he replied to the government of States Units after he put them in the Department of Defense blacklist. This means that the Chinese company it will be prevented from establishing business with American companies like Google, for example.
Since Xiaomi made a call for calm through a statement where they explained that “Xiaomi has complied with the law and operated in compliance with the laws and regulations of relevant jurisdictions where it conducts its business”.
Recall that last Thursday the administration of Donald Trump included a Xiaomi a la Department of Defense blacklist, So it stayed veto of negotiating with American companies.
This is due to the fact that Xiaomi allegedly has ties to the Chinese government. “Xiaomi confirms that it is not owned, controlled or affiliated with the Chinese military, and that it is not a ‘Chinese Communist Military Company’ defined in the NDAA (National Defense Authorization Act). “, they added.
Moreover, it has until November 11, 2021 to sever all business ties with U.S. companies, at the same time that Americans who have shares there have to sell them.
The effects were already beginning to show. According to Business Insider, shares of Xiaomi fell 14% last Friday after the government’s announcement of Trump.
But inside all, it’s not the same as Huawei. According to El Confidencial, in Xiaomi it’s only on the Defense blacklist, it is only prevented from American companies investing or owning shares in the Chinese company.
Likewise, Xiaomi can continue to access both software and hardware technologies, Such as Qualcomm processors, for example.
Huawei, Being in the Defense and Trade blacklists were barred from doing business and receiving investment from U.S. companies, while access to software and hardware was banned.
There is also expectation of how the new president Joe Biden will react, who will take over as president of the United States on January 20.
You may also be interested in: