Trump administration blacklists Xiaomi

Just before taking his leave, the Trump administration has just added several Chinese companies to its blacklist, in order to lock down certain collaborations with American companies. Within this list, we find a well-known name: Xiaomi.

The USA has decided to strengthen the embargo installed on Chinese companies and therefore added Xiaomi to the list in question, more than a year after the embargo aimed at sanctioning the giant Huawei.

The American blacklist thus targets 9 additional companies, designated as linked to the Chinese government or the Chinese army and therefore as “Chinese Communist military companies”.

For the moment, the embargo does not result in the loss of the Android license for Xiaomi. The blacklist in question is different from the entity list on which Huawei is placed and which locks all commercial ties with the United States and its companies.

However, the situation could change and the sanctions could be reinforced. And even if the embargo does not evolve, the situation could encourage Xiaomi to think, just like Huawei, about its dependence on the United States on both the hardware and software part.

Xiaomi’s US investors will have to withdraw their capital from the Chinese company before November 11, 2021 or face sanctions. The announcement caused Xiaomi’s share price to plunge by 10%.

By sanctioning Chinese companies too much, the United States could face a severe backlash. Huawei is preparing a comeback with great fanfare with its own ecosystem and 100% homemade equipment, a choice from which Xiaomi could be inspired. Moreover, Xiaomi could choose to approach Huawei to form a common front with Google and the United States in general.

Source: GNT – actualit├ęs by

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