US President Donald Trump has decided to use the last days of his mandate to expand the “blacklist” of Chinese companies accused of links to the military government in Beijing.
Technology giant Xiaomi and oil company CNOOC are added to the list of companies that are believed to be cooperating with the Chinese military.
Xiaomi is the third-largest mobile device manufacturer in the world
Xiaomi recently overtook Apple and became the third smartphone producer in the world.
In their official business reports, Xiaomi reported results for the third quarter of last year in which they recorded 46.6 million phones sold, around 4 million more devices than the silicon valley company.
It is also interesting to note that more than half of Xiaomi’s revenues come from exports or devices sold in markets outside China.
However, this move by the Trump administration and the Pentagon might affect Xiaomi’s sales results.
All U.S. investors have been ordered to sell off their stakes and direct their investments elsewhere by November 2021.
Although another Chinese technology giant, Huawei, despite sanctions, managed to retain the second position of the world’s largest smartphone manufacturers and sell more devices than Xiaomi and Apple, they recorded a drop in revenue of 23%, and a similar fate might await Xiaomi as well.
This is technically not the same blacklist of the US Department of Commerce that Huawei is on, so the consequences for Xiaomi might be less serious, but will certainly affect the technology giant.
Xiaomi replied that the company is not under control and is not affiliated with the Chinese military and is not a “communist Chinese military company”, as the US Department of Defense stated.
Oil giant blacklisted as well
The US Department of Commerce also blacklisted Chinese state oil giant CNOOC for harassing and threatening companies exploring and extracting oil and gas in the South China Sea.
U.S. Secretary of Commerce Wilbur Ross stated that CNOOC actions are acts of bullying and intimidation.
After being blacklisted, the Chinese oil company will have to obtain special permits to be able to import technological products from U.S. suppliers.