Xiaomi and Trump: another ban puts the Chinese company on the black list
Trump announces another ban to a Chinese company: this time it’s up to Xiaomi, one of the largest manufacturers of smartphones and electronics products in the world. The Defense Department of the outgoing President calls Xiaomi one “Chinese Communist Military Society “ . A strong decision destined to cause discussion, which barely comes five days before the inauguration of the new President-elect Joe Biden.
- Xiaomi and Trump: another Chinese company on blacklist
- Xiaomi’s response to Trump
- Effects of the ban: what changes for those who have a Xiaomi smartphone?
- Can the Biden administration change anything?
Xiaomi and Trump: another Chinese company on blacklist
After Huawei, Xiaomi also suffers the Trump ban. Trump’s Defense Department decision comes on allegations of ties to the army of the People’s Republic of China, although a rather ambiguous language is used in the text. Indeed, it is said that Xiaomi “ensures access to advanced technologies” to the Chinese army through what “appear to be research programs of civilian entities”. The document therefore does not go into detail, limiting itself to saying that according to the American Defense Xiaomi provides technology to the army. In the text no further information is provided.
Xiaomi’s response to Trump
We contacted Xiaomi, who provided us these words in response to the US government’s accusations:
“Xiaomi has always respected the law and acted in accordance with the provisions and regulations of the jurisdictions of the countries in which it carries out its business.
The Company reiterates that it provides products and services for civil and commercial use. It also confirms that it is not owned, controlled or affiliated with the Chinese military and that it is not a “Chinese Communist Military Society” as defined by the NDAA.
Xiaomi will take appropriate actions to protect the interests of the Company and its shareholders and is also examining the potential consequences of this act to get a more complete picture of its impact on the Group.
There will be further announcements, if and when Xiaomi deems it appropriate. “
Effects of the ban: what changes for those who have a Xiaomi smartphone?
The main questions that are forming in the minds of all phone owners of the brand are: what will happen to my phone? Will I still be able to use Google services and apps on my Xiaomi? The fear, in fact, is that of finding oneself in a position similar to that of Huawei and its users.
However, in this case, an important distinction to be made is that the accusation this time comes from Department of Defense, not from that of Trade. This means that the US investors they can no longer invest in Xiaomi shares and must sell the shares already acquired by 11 November 2021. But it does not prevent American companies from providing products and software.
Trump’s ban does not prevent Xiaomi from using the services of Google and other American companies
So, even after Trump’s ban and blacklisting, Xiaomi can continue to use Android, the Play Store and access all Google services. In addition, the company can continue to buy i processors from Qualcomm, even the new chips for 5G. In practice, therefore, nothing changes for those who are thinking of buying a smartphone: you can buy a Xiaomi phone without risk.
Can the Biden administration change anything?
On January 20, the United States inaugurates a new phase, the administration led by Joe Biden. The new President has demonstrated in the past years of dislike many of Trump’s foreign policy decisions. But the Chinese question is delicate and it remains unlikely that Biden will cancel the bans to Xiaomi, Huawei and even DJI in the first days of government.
However, we can expect a change of direction in the next four years. If Huawei’s ban cost the company a lot (as we tell you in this article), for Xiaomi the real problem is the return of image and possibly financial. A problematic backlash by a President in the last five days of government. Here you will find the official ban text. Sign up for our newsletter to stay updated on this and all the most important tech news.