You are a ‘communist Chinese military company’, US tells Xiaomi
The US-China trade war under the presidency of Donald Trump has had quite an impact on the tech world. And now with a few days left of the Trump administration, it looks like Xiaomi may have to ‘suffer’. According to a report by The Verge, the Department of Defence (DOD) has categorised Xiaomi as a “communist Chinese military company”.
What this does is it puts Xiaomi at risk to an executive order signed by Trump which restricts US companies from investing in the company.
“The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities,” the DOD said in a press release.
The first such list was issued by the US in June and includes Huawei as well. The US department of commerce has a separate ‘entity’ list which restricts US companies to export tech to Chinese companies. Xiaomi hasn’t been put on that list, as of now but Huawei is on both the lists.
As of now Xiaomi hasn’t responded to the move by the US DOD. Xiaomi is one of the biggest smartphone companies in the world and has its presence in every major market.
It remains to be seen if the executive order may be overturned by the Joe Biden administration, which takes over on January 20. Experts have so far suggested that Biden may not soften the US stand on the trade relations with China. Meanwhile Trump’s parting ‘gift’ to Xiaomi is not something that would the Chinese tech giant would’ve wanted.
What this does is it puts Xiaomi at risk to an executive order signed by Trump which restricts US companies from investing in the company.
“The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities,” the DOD said in a press release.
The first such list was issued by the US in June and includes Huawei as well. The US department of commerce has a separate ‘entity’ list which restricts US companies to export tech to Chinese companies. Xiaomi hasn’t been put on that list, as of now but Huawei is on both the lists.
As of now Xiaomi hasn’t responded to the move by the US DOD. Xiaomi is one of the biggest smartphone companies in the world and has its presence in every major market.
It remains to be seen if the executive order may be overturned by the Joe Biden administration, which takes over on January 20. Experts have so far suggested that Biden may not soften the US stand on the trade relations with China. Meanwhile Trump’s parting ‘gift’ to Xiaomi is not something that would the Chinese tech giant would’ve wanted.
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