US-China trade war activethe stage of which fell on the years of Donald Trump's reign in the United States, affects more and more new companies. In the weeks leading up to the handover of power to Joe Biden, Trump expanded the list of firms subject to US government sanctions. One of the most influential Chinese firms on the US blacklist is Xiaomi, which has joined 8 more Chinese manufacturers. Xiaomi representatives immediately reacted to the US sanctions and issued an official statement.
The Trump administration added last Thursdaynine Chinese firms blacklisted alleged Chinese military companies. The most famous companies hit by investment sanctions are aircraft manufacturer Comac and high-tech diversified firm Xiaomi.
Companies will be subject to new investmentrestrictions in the United States, as a result of which American investors will be forced to get rid of their assets in blacklisted firms by November 11, 2021.
Xiaomi immediately released the officiala statement in which she responded to claims from the Pentagon, which suspects the company of working for the Chinese army and special services. Xiaomi representatives claim that the company operates in accordance with international trade law and "... provides products and services for civil and commercial use."
At the same time, it is officially announced that Xiaomi does notis controlled by, does not belong to, or has ties to the Chinese army, and “... is not a communist Chinese military company as defined in the NDAA (National Defense Authorization Act 1999). The firm confirms its intention to protect the interests of shareholders and analyzes the consequences for the corporation from the imposition of sanctions A more detailed statement will be issued in the near future.
Despite the inclusion of Xiaomi in the sanctionslist, the company will continue to collaborate with US high-tech firms such as Google or Qualcomm. However, US investors must withdraw their investments from the Chinese company by November 11, 2021. The situation may change dramatically after the assumption of the office of US President Joe Biden, known for his good relations with Chinese companies, on January 20, 2021.