Trump Admin Blacklists Xiaomi, 8 Other Firms With Chinese Military Ties

The United States' States' States' Department of Defense under outgoing US President Donald Trump has added nine Chinese companies to a blacklist of companies that are alleged to be working with the Chinese military. Smartphone maker Xiaomi is also a part of the list of nine companies that are alleged to be "Communist Chinese military companies," operating either directly or indirectly within the United States.

The ban on the nine Chinese companies including Xiaomi comes in accordance with the statutory requirement of Section 1237 of the National Defense Authorisation Act of 1999 in the US. Shares of Xiaomi opened 10.6 percent lower on the Hong Kong stock exchange on Friday on the news.

The department of Defense announced its list on Thursday. It is unclear how Xiaomi falls under the category of "Communist Chinese military companies, as the company has mostly stuck to making consumer products. According to Reuters, American investors will need to divest their holdings in each of the blacklisted firms by November 11, 2021.