Xiaomi reacts to US govt blacklisting the company

United States Department of Defense (DoD), earlier in the week blacklisted several technology firms including Xiaomi as 'Communist Chinese military companies' and they pose a security threat to the country.

DoD believes the listed firms are directly or indirectly linked to the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy. Even though the business they conduct appears for commercial civilian use, they are accused of helping modernization goals of the People’s Liberation Army (PLA).

"The Department of Defense released the names of additional -' Communist Chinese military companies' operating directly or indirectly in the United States in accordance with the statutory requirement of Section 1237 of the National Defense Authorization Act for Fiscal Year 1999, as amended. "

This is a US government executive order and local companies and investors are thereby obliged to end all ties with blacklisted firms by the end of November 11, 2021.

Now, Xiaomi has reacted to Donald Trump's gag order. It says the company has complied with all relevant laws and local regulations to conduct business in the US.
Xiaomi also reiterated that the company is not owned or affiliated with China's ruling government.

“The Company has been in compliance with the law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. 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. The Company will take the appropriate course of actions to protect the interests of the Company and its shareholders.

The Company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The Company will make further announcements as and when appropriate.”-- Xiaomi Spokesperson

Xiaomi is a consumer electronics major, which has a big market share in Europe and Asia, but it is a bit strange, Xiaomi is being grouped among infrastructure creating sectors such as aerospace, aviation, chemicals, construction, shipbuilding, telecommunications, and others in the blocked list.

However, there is the possibility that the Bidan administration may take Xiaomi off the list after a more thorough investigation.

But, can't be said the same for its China-based peer Huawei, as the company makes advanced high-tech telecommunication gear and sets up 5G infrastructure in several countries.

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