Xiaomi gets sanctioned for ridiculous reasons

Outgoing Trump administration set traps for the incoming one

15.Jan.21 9:15 AM
By Shawn Highstraw
Photo Xiaomi

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Xiaomi gets sanctioned for ridiculous reasons

The United States has blacklisted smartphone maker Xiaomi for "alleged ties to China's Army". As a result, American investors are forced to give up their interests in the company, which is considered the third largest maker of smartphones in the world. In addition to Xiaomi, the Trump government blacklisted eight other companies, including a state-owned aircraft manufacturer.

The measure against Xiaomi follows similar actions against three Chinese telecom companies. The stock exchange of these companies in New York was then suspended by stockbroker NYSE. They were also extracted from world-leading stock exchange meters.

Xiaomi denies having ties to the Chinese people's Liberation Army. The army would also have no interest in the technology company, according to the company's spokesman.

As a result of the new measures, a total of 44 Chinese companies are blacklisted. With the announcements, outgoing President Donald Trump puts pressure on his successor Joe Biden to continue his hard line against the Asian country.

The US has also put a major Chinese oil company, CNOOC, on another blacklist. As a result, American companies are not allowed to supply technology to this company unless they are granted a special permit for this. This ban has to do with the conflict in the South China Sea, where, alongside China, many other countries claim the parts of the sea. CNOOC carries out drilling in that area, which, according to the US Trade minister, amounts to "reckless and belligerent behaviour."

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