Xiaomi’s response after being stamped “Chinese Communist Military Company”

Teknoku.me – The United States government under the Donald Trump administration blacklisted Xiaomi.

The decision was taken after the US Department of Defense categorized Xiaomi as a “Chinese communist-owned military company”.

The Chinese company is prohibited from investing under the National Defense Authorization Law (NDAA), which forces US investors to divest shares as of November 11, 2021.

To this accusation, Xiaomi gave its response through a clarification uploaded on the official Xiaomi blog.

“The company (Xiaomi) has complied with the law and operates in accordance with relevant laws and jurisdictional regulations in conducting its business,” wrote Xiaomi.

Xiaomi insists that the products it makes are for commercial purposes used by civil society.

“The company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not the” Chinese Communist Military Company “as defined by the NDAA law,” Xiaomi continued in the company blog, Saturday (16/1/2021).

In the statement, Xiaomi said it would take appropriate action to protect the company and its stakeholders. It is not clear what action Xiaomi will take after this.

Reuters reported, apart from Xiaomi, there were eight other Chinese companies that were blacklisted. Most of these are companies engaged in the aviation, aerospace, shipbuilding, chemical, telecommunications, construction, and infrastructure industries.

This law has actually existed since 1999 when the US Department of Defense was asked to compile a list of companies controlled and owned by the Chinese military.

But the law did not go into effect until Trump issued an executive order barring US investors from investing in blacklisted companies.

To date, the Pentagon has added a total of 35 companies blacklisted under the new NDAA law, including Chinese oil company CNOOC and chipmaker SMIC.

This blacklist is different from the entity list that entangled Huawei since two years ago. Companies that are included in the entity list are prohibited from conducting any transactions, including buying and selling of components and software with companies from the US, without the approval of the US government.

Meanwhile, the NDAA law only regulates for US companies to transfer their shares from listed Chinese companies.

The Trump administration, which is only counting the days, is also exploring the possibility of blocking companies from five other countries, namely Russia, Iran, North Korea, Cuba, and Venezuela. These countries will be prohibited from supplying telecommunications equipment to the US.