The United States Department of Defense has added more Chinese companies to its blacklist with alleged military implications, and out of nine names, the name stands out Xiaomi Corporation. However, despite how alarming, the situation is far from representing the same as what happened with Huawei in 2019.
There are several “blacklists”
No, the United States has not vetoed Xiaomi to sell its products in the country. The list of military end users restricts U.S. companies from supplying Chinese companies with elements and components, in accordance with Appendix 2 to Part 744 of U.S. law, which may pose a risk due to their diversion to military purposes. It’s not the same as Entity list (where Huawei is), so the commercial ban in this case does not apply to Xiaomi.
The inclusion of Xiaomi (and other Chinese companies) in the Ministry of Defense’s List of Military End Users represents, as Reuters exclusively reported that he would not be able to receive investments from companies from the United States. In other words, North American investors will have to get rid of their shares in blacklisted companies.
This investment block will be applied from November 11, 2021.
The clearest example of the situation, as explained in kda-programmers, is that Qualcomm Ventures, a company that has invested in Xiaomi for a long time, will have to get rid of its participation in the Chinese company, but it has nothing to do with or affects the supply chain of chipsets for their smartphones.
So no, Xiaomi is not banned in the United States. Xiaomi smartphones will continue to be sold in North America as well continues to work as before with US companies such as Google and Qualcomm, despite being on the Ministry of Defense’s List of Military End Users.
From Xataki Mekico, we contacted Xiaomi to find out his position regarding the situation. As soon as we receive a response, we will update this post.