US declares Xiaomi a “Communist Chinese military company,” bans investments

The latest shot in the US government's battle against leading Chinese smartphone vendors is targeted at Xiaomi, which today, through a recent executive order, has landed on the US government's list of "Communist Chinese Military Companies" The declaration makes owning Xiaomi stock illegal for US residents.

For a year and a half now, the US and China have been exchanging blows over Huawei, which was added by the US Department of Commerce to the "entity list" Although on the list of organizations, American companies are unable to partner with or sell goods to Huawei. It is illegal for Huawei to manufacture any "US-Origin." goods. US Origin does not only mean products manufactured by US firms in the US; there is also a "viral" aspect of the rule, where any device made abroad with some components of US origin also qualifies as a product of US origin.


 

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