The Trump Administration is days away from being history, but before it bows out, it is taking one last swing at Chinese Tech firms. Xiaomi, China’s third-largest smartphone manufacturer, has been blacklisted by the US’ Department of defence on grounds that the company has ties to the Chinese Military.
The blacklist isn’t as dire as the measures taken against Huawei. In Xiaomi’s case, US citizens, entities and companies cannot invest in the firm. This means that Xiaomi won’t lose Google Services support, and access to Qualcomm chips according to a report by The Next Web.
So in short the ban affects the purchase of Xiaomi shares and securities. This means that Qualcomm will have to divest its stake in Xiaomi by the 11th of November.
This decision could be overturned by the incoming Biden Administration but that remains to be seen. It will be interesting to see how this all unfolds and if President-Elect Biden will address this and Huawei’s situation in his first 100 days in office.
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