The US Division of Protection has added Chinese language cell phone maker Xiaomi to an inventory of corporations that will be managed by Chinese language army personnel below the 1999 Nationwide Protection Authorization Act. The federal government believes that Xiaomi’s attainable ties to the army they’re shut sufficient to pose a possible risk to america.
Because of this US buyers might be compelled to promote shares or stakes within the firm earlier than November 11 this yr, and might be prevented from doing so sooner or later.
This risk record is just not the identical record of entities that Huawei was added to in 2019 and that forestalls the corporate from buying elements of the US trade. Nonetheless, it’s not clear if Xiaomi will even be added to that record sooner or later.
Xiaomi has spoken out and denied these allegations, saying that it’s not linked to the Chinese language army. In a press release, a Xiaomi spokesperson mentioned:
The corporate reiterates that it offers services and products for civil and business use. The corporate confirms that it’s not owned, managed or affiliated with the Chinese language army and isn’t a ‘Chinese language Communist Army Firm’ outlined within the NDAA. The corporate complies with the regulation and operates in accordance with the related legal guidelines and rules of the jurisdictions the place it conducts its enterprise. The corporate reiterates that it offers services and products for civil and business use. The corporate will take acceptable measures to guard the pursuits of the corporate and its shareholders.
That record has existed since 1999. Nonetheless, it lacked pressure till Trump issued an govt order prohibiting US buyers from investing within the corporations listed on this doc. The record additionally mentions 8 other Chinese companies.