The US government has mounted pressure on China by blacklisting Xioami Corp., the smartphone maker, and the country’s third largest national oil company. The government of USA has taken action against these companies for their alleged military links.
The Department of Defense has added 7 more companies to the blacklist, including Commercial Aircraft Corp. of China and Xiaomi. What this means for investors in USA, is that they have been directed to withdraw their stakes in these companies on the DOD list, by November 2021.
In a similar move, Huawei’s sales went down drastically after it was blacklisted and its smartphone services removed from Google. Xiaomi currently has overtaken Apple Inc., as 3rd largest smartphone producer, in terms of sales, in 2020 according to a report by Gartner.
Despite the move made by the US government, Xiaomi officials were unavailable for comment.