Trump’s decision to add Xiaomi Xiaomi to the blacklist and the repercussions of this decision

Yesterday, Thursday, the US administration of the Trump government added Xiaomi Xiaomi for the production of mobile phones and technologies, comac Comac Aviation and seven other Chinese companies to the blacklist, from the ban on dealing with them under the title “Protection of information, communication technology and service supply chains.” With these companies and before them, Huawei and several other companies based on several reports that have proven the presence of many gaps and back gates in some Huawei equipment, which made the US government afraid of the Chinese government using these loopholes in spying, although this has not yet been proven. Huawei has repeatedly denied the allegations.

Trump's decision to add Xiaomi Xiaomi to the blacklist and the repercussions of this decision

This decision taken by outgoing President Donald Trump, which is the last decision taken by the Trump administration to ban Chinese Xiaomi, has many repercussions, so that American shareholders in these companies must sell these shares within a maximum period of February 11, which led to a decline in the price of the company’s shares. Xiaomi is in the Hong Kong Stock Exchange at a rate of 10%, and the company incurred heavy losses as a result of this decision, which represents a strong attack on these companies.
This made the Chinese government denounce this alleged US decision from its point of view. The Chinese Foreign Ministry spokesman said Friday, according to what was reported by the “German”. “The Chinese side will take necessary measures to protect the interests of Chinese companies.”

According to what Xiaomi’s product manager said in January 2020 in an interview with him after the US administration banned Huawei in 2019, when he was asked about it, he stated that Xiaomi is fully prepared to deal with any similar situations in case it is exposed to the same fate as Huawei, as he explained. The company is proceeding on the path of expanding its investments in order to work on managing production by itself in the event that it loses cooperation with the United States of America.
But it is worth noting here that today, after this cooperation has already been lost and has already been blacklisted, the company incurred huge losses of $ 5 billion on the first day after the ban.


Source: مصر فايف by misr5.com.

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