This comes as no surprise to some, days after Xiaomi had solidified being the 3rd largest phone manufacturer in the world and with plans to enter the North American market, the Trump administration has designated Xiaomi as a “Communist Chinese military company” which would make Xioami be one of the blacklisted companies under the Trump Administration’s Executive Order from November that bars American securities and investment companies from putting capital resources on investments that fund “Communist Chinese military companies”.
That executive order stated that the “PRC exploits United States investors to finance the development and modernization of its military,” by selling securities to US investors that trade on public stock exchanges both in the US and overseas.
By designating Xiaomi as one of these military companies, the Administration hopes to get US companies to divest in Xiaomi by November 2021.
The ban also comes as surprise to some, as Xiaomi doesn’t seem to belong on this list with other industrial, aerospace, and chemical, and telecommunications companies – including Huawei.
The Trump administration is almost over, With less than a week left before the Biden Administration takes over, there is a possibility of the order being overturned, if the tension between the US and China don’t get worse, this order could be dismissed by the new Administration and probably see Xiaomi back in the US market saturated by Samsung and Apple.