With six days left in office, theTrump administration has decided to target another Chinese electronics giant: Xiaomi, the third largest phone manufacturer in the world. According to what emerged in the last few hours, the United States Department of Defense has also entered the company founded in 2010 by Lei Jun in blacklist of companies believed to have links to the Chinese military. At the moment it would seem that the measure does not affect the current commercial relations between Xiaomi and the various American companies (as happened in the case of Huawei), but it could force the latter to interrupt relations with the Chinese giant starting from 11 November 2021, according to Reuters. Below is a brief statement released by a spokesperson for the company, to the microphones of The Verge:
Xiaomi has always respected the law and acted in accordance with the provisions and regulations of the jurisdictions of the countries in which it carries out its business. The Company reiterates that it provides products and services for civil and commercial use. It also confirms that it is not owned, controlled or affiliated with the Chinese military and that it is not a "Chinese Communist Military Society" as defined by the NDAA. Xiaomi will take appropriate action to protect the interests of the Company and its shareholders and is also looking into the potential consequences of this act to get a more complete picture of its impact on the Group. There will be further announcements, if and when Xiaomi deems it appropriate.
While the Biden administration may overturn the ordinance, we are surprised to see a consumer electronics company on this list. Most of the other companies involved are more industry oriented, specializing in aviation, aerospace, shipbuilding, chemical, telecommunications, construction and other forms of infrastructure. Huawei, the second largest phone maker in the world, is also on the list, but the latter also builds telecommunications equipment on a large scale.
It is worth underlining that in the States there are two black lists, that of Department of Defense, which blocks investments by American companies, and that of the Department of Commerce, which explicitly authorizes the possibility of having commercial relations with American companies. Unlike Huawei, which has been included in both lists, Xiaomi is found exclusively in that of Defense, therefore currently Google services and the supply of components would not be at risk.
