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US bans Americans from investing with Xiaomi

The outgoing Trump administration just added nine Chinese firms to a blacklist of alleged Chinese military companies including phone giant Xiaomi.
US bans Americans from investing with Xiaomi
File photo: Xiaomi store in PH

Trump blacklists Xiaomi

According to a report by Reuters, the companies will be subject to a new US ban which forces American investors to unwind their holdings of the blacklisted companies by November 11, 2021.

Bloomberg noted that the US government has blacklisted the mobile giant due to its alleged military links with the Chinese government.

State Department undersecretary for economic growth, energy, and the environment Keith Krach told reporters last Thursday that "ample warning has been given to the public about the material risks associated with investments" identified in Trump’s executive order.

Recently, Xiaomi topped Apple as the world's number 3 largest mobile maker based on market research firm Canalys and Gartner.

Apart from Xiaomi, the other notable Chinese companies included in the blacklist are planemaker Comac and the oil giant Cnooc.

The investment ban is different from China's Huawei's addition to the so-called "Entity List" back in May of 2019.

Sources: Reuters, Bloomberg

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