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Xiaomi designated as a ‘Communist Chinese military company’ by US govt

Smartphone maker Xiaomi has been branded as a ‘Communist Chinese military company’ by the US’s Department of Defense. This means that American businesses could potentially be prohibited from investing in Xiaomi, and they might be forced to divest from Xiaomi on November 11, 2021, as per an executive order signed by Donald Trump in November last year, which was amended on Thursday. Previous companies that have been added to it include Huawei, Hikvision, and Semiconductor Manufacturing International Corporation, among others. Apart from technology companies, the list also includes companies from the infrastructure, aviation, chemicals, and aerospace sector. “The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities," the Defense Department said in a statement. In response to being added to the list, a Xiaomi spokesperson sent the following statement to MediaNama: “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…

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