Teknoku.me – Towards the end of his term, US President Donald Trump blacklisted Xiaomi from investing in companies.
Xiaomi will be subject to an investment ban under the new law, which forces US investors to divest shares as of 11 November 2021.
The inclusion of Xiaomi on the list of banned companies after the US Department of Defense categorized Xiaomi as a “Chinese communist-owned military company”.
Apart from Xiaomi, there are nine other Chinese companies on the blacklist, mostly dominated by companies in the aviation, aerospace, shipbuilding, chemicals, telecommunications, construction, and infrastructure industries.
For information, this list is different from the list of “entity lists” implemented by the US Department of Commerce, where Huawei is included in the list.
All companies included in the entity list are prohibited from conducting any transactions, including buying and selling of components and software with US companies, without US government approval.
Meanwhile, the new investment law only regulates for US companies to divert shares from listed Chinese companies.
Apart from China, the Trump administration is currently exploring blocking companies from five other countries from supplying telecommunications equipment to the US. The countries in question are Russia, Iran, North Korea, Cuba, and Venezuela.
This policy may be changed during the administration of the new US President, Joe Biden.
Previously, in May 2019, the Trump administration included Huawei in the entity list. Since then, Google and several other companies have cut their business with Huawei.
The same thing happened to ZTE in 2016. At that time, the US restricted sales of telecommunications components to ZTE, which in turn froze the company’s component supply chain.
In December 2020, the US government also included the name of the drone manufacturer from China, DJI, on the list of companies that are banned in trade matters. It is unclear what the long-term impact of the US blacklist will be on the DJI.