A couple of days ago, the outgoing US administration led by Trump slammed a ban on Xiaomi, which happens to be the third-largest smartphone maker in the world. According to reports, the US government claims the Chinese company has ties with its military, and hence, had to include them on the blacklist.
Xiaomi has since denied the allegations in a statement, saying;
“The Company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The Company reiterates that it provides products and services for civilian and commercial use. The Company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not a “Communist Chinese Military Company” defined under the NDAA. The Company will take appropriate course of actions to protect the interests of the Company and its shareholders. The Company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The Company will make further announcements as and when appropriate.”
While the company is yet to release another statement to communicate how the ban will affect them, many people now see Xiaomi as the next Huawei. That’s not true as even with the recent US ban, Xiaomi phones will continue receiving updates and running Google services.
Unlike Huawei, which is placed under the US Commerce Department Entity list, which barred them from conducting business with any US-based companies, the Xiaomi ban imposes a no-investment policy. It requires all American companies to divest their holdings in the company, but that won’t breach Xiaomi’s supply chain with these companies.
All American based companies are given till November 21, 2021, to divest their stakes. And unless anything changes, Xiaomi phones will continue receiving updates and running Google services even after the deadline that has been given. However, we hope things take a positive turn, with the present US administration leaving office in two days.
