Trump designates Xiaomi as ‘Communist Chinese language navy’ firm

Trump designates Xiaomi as ‘Communist Chinese language navy’ firm


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Within the closing days of his presidency, Donald Trump has moved in opposition to one other Chinese language tech big. On Wednesday, the Trump administration formally added Xiaomi, together with eight different corporations, to its listing of “Communist Chinese language navy corporations.”

Corporations designated as Communist Chinese language navy corporations by the Division of Protection are blacklisted from receiving investments from US residents or organizations. If not overturned, the designation would imply current buyers inside the US would want to divest from Xiaomi.

Xiaomi is likely one of the largest telephone makers on the earth, with solely Samsung and Huawei promoting the next amount of telephones, in response to IDC analysis. With a world marketshare of 13.1%, because of its recognition in China, Latin America and Europe, Xiaomi sells much more telephones than Apple. (Apple sells fewer telephones than rivals however makes much more revenue per telephone offered.) 

Xiaomi did not instantly reply to a request for remark.

The Redmi Word 9T, certainly one of Xiaomi’s newest price range telephones. 


Xiaomi’s designation is completely different from the one the Trump administration gave to Huawei, China’s largest tech firm. Huawei is on the US Division of Commerce’s “Entity Record,” which forbids US corporations from buying and selling with it. For this reason latest Huawei telephones have operated with out entry to Google’s Play Retailer or US chipmakers. 

Huawei was placed on the Entity Record, alongside ZTE, as a result of a big a part of its enterprise is telecommunications tools, equivalent to organising 4G and 5G networks. This a part of Huawei’s operations — not it is telephone making, for which it is extra identified within the West — was decided by the Trump administration to be a nationwide safety threat. Xiaomi solely sells shopper electronics, which is presumably why it was placed on the much less extreme blacklist. 

The Division of Protection established the listing of corporations related to or managed by the Folks’s Liberation Military in 1999. 

“Key to the event of the PRC’s navy, intelligence and different safety apparatuses is the nation’s giant, ostensibly personal economic system,” a latest government order from Trump learn. “By way of the nationwide technique of Army-Civil Fusion, the PRC will increase the dimensions of the nation’s military-industrial advanced by compelling civilian Chinese language corporations to help its navy and intelligence actions.”

Trump’s reproaching of Chinese language corporations has been an indicator of his presidency. Past Huawei and ZTE, Trump has additionally tried to ban social media platform TikTok. Final week, he signed an government order that prohibits transactions with eight Chinese language-made apps, together with WeChat Pay and AliPay. 

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