The administration Trump in the United States today added Xiaomi’s name to its Blacklist for companies with ties to the Chinese military. This is a list that makes investors in the United States. Any investment with all Chinese companies must be abandoned.
As reported by Reuters, the president of the United States, with just days left, like Trump, has added nine Chinese companies to the blacklist. It was suspected that those companies would be particularly related to the Chinese military. One of which is the well-known Xiaomi or Mi smartphone manufacturer. But I must say that this is not a ban that will have the same effect on Huawei.
Because for Huawei, Trump stressed that the company is directly related to the Chinese government. And banned companies in the United States. Working together or trading with Huawei is strictly prohibited, but this new set of lists is different. Because it is suspicious of the relationship That these companies will be close enough to the Chinese military that they may pose a threat to the United States.
The data reported that the blacklist actually has existed since 1999, however, in the past there were no measures or actions taken. Until an order from the US management team That prohibits US investors from investing in companies listed on the blacklist today.
WHAT DIFFICULTIES WILL A BLACKLISTED COMPANY LIKE?
Xiaomi’s business is unlikely to have the same problems as Huawei, because this blacklist just has a policy not to let investors in the United States. Only investing in Xiaomi will not affect the supply of Xiaomi’s supply chain, and there will be no ban on trading between the US company and Xiaomi, however, it will definitely make Xiaomi in trouble. Whether it is a loss of funds, a lot of liquidity. Because American investors will have to sell Xiaomi’s shares by November 11, 2021 or the end of this year.
You have to see how much this change will affect Xiaomi. Because it is another brand that is good, good day and night Will there be any additional measures? Because Donald Trump himself will serve as President of the United States only in a few days. But he seems to be able to use his power to deal with as many Chinese companies as he can