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US blacklists Xiaomi, 8 other Chinese companies; shares of smartphone maker dive nearly 11%

The US Department of Defense (DOD) added nine companies to its list of Chinese companies with military links, including Xiaomi and plane manufacturer Commercial Aircraft Corp. of China (Comac),

January 15, 2021 / 11:10 AM IST

Xiaomi's Hong Kong-listed shares fell nearly 11 percent at the start of trading on January 15, after the US blacklisted the smartphone maker barring investors from investing in its shares.

The Department of Defense (DOD) added nine companies to its list of Chinese companies with military links, including Xiaomi and plane manufacturer Commercial Aircraft Corp. of China (Comac).

Also read: US blacklists Xiaomi, CNOOC, Skyrizon, raising heat on China

The smartphone-maker's shares had dropped 10.6 percent after the development, CNBC reported.

Xiaomi will now have to comply with an executive order passed by US President Donald Trump in November 2020, which restricts US investors from buying shares or related securities of any companies on the DOD's list.

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According to data by Gartner, Xiaomi replaced Apple as the world's third-largest smartphone maker by sales in the third quarter of 2020.

On January 14, Aircraft manufacturer Commercial Aircraft Corp. of China (Comac) was also among the companies added to the DOD's list of Chinese companies with military links.

Separately, the US Department of Commerce added China National Offshore Oil Corp. (CNOOC) on an economic blacklist.

"China's reckless and belligerent actions in the South China Sea and its aggressive push to acquire sensitive intellectual property and technology for its militarization efforts are a threat to US national security and the security of the international community," US Commerce Secretary Wilbur Ross said in a statement on January 14.
TAGS: #Xiaomi
first published: Jan 15, 2021 10:47 am

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