After Huawei, Xiaomi is the second biggest company to join the list of US blacklisted companies. Simultaneously, other blacklisted Chinese companies belong to the aviation, nuclear energy, semiconductor, and infrastructure industries.
What does this ban mean for consumers?
The ban would stop the sale or investing any money in buying products for the end-user. The united states government will also stop cellular companies not to sell their service with Xiaomi smartphones.
Furthermore, the Americans are now banned from investing in Xiaomi Corp. shares on the stock market.
Xiaomi Corp. focuses on the manufacturing of smartphones, smartwatches, speakers, headphones, and home appliances. Xiaomi’s stock price has doubled in the US stock market in the past 12 months.
Reply by Xiaomi
A blog post published on Xiaomi’s official website has confirmed that the company is neither controlled nor owned or affiliated with the Chinese military.
Adding more to the statement, the company assured that it has been in compliance with the law and the operating compliance with the laws of the business’s jurisdiction in every region.
This is to be noted that Xiaomi being on the blacklist doesn’t mean that the US companies can not do business with Xiaomi, as in Huawei. Despite being on this list, Huawei is also on the “US Entity List,” which makes US companies not to have any business with Huawei. However, Xiaomi is not yet on the US Entity List.
Xiaomi confirms that it is a consumer-oriented company and is different from Huawei and its operations. As Joe Biden is taking the oath on January 20th, Xiaomi can hope that the new administration will lift the ban and revert their decision.