Xiaomi ends up on a blacklist of the American government like Huawei, but luckily for the Chinese smartphone manufacturer on a different one. Still, this last step by the Trump administration shows how dangerous life has been for Android OEMs in the past 4 years when collaboration with Google is essential.
Soon this reactionary action will come to an end, and then there will be a new US president with a focus on his establishment. That in turn does not have to mean the end of the sanctions that have been imposed on Huawei since May 2019. A tough course against China will remain in place.
USA puts Xiaomi on a less bad list
Reuters reports that the US government recently blacklisted nine Chinese companies as suspected Chinese military companies.
This blacklist doesn’t seem to have as blatant an impact as the blacklist on Huawei. Xiaomi only has to do without American money for the time being, existing US investments have to be withdrawn by the end of the year. At least Xiaomi’s share price reacted to this with a downward slide.
The only question now is whether these sanctions will be withdrawn once America is under the new administration.
Why does it hit Xiaomi less hard?
Huawei is particularly in focus because of its network technology. Huawei is already everywhere today and would have received big pieces of cake from future 5G networks. With state espionage over cellular and network technology, it was easy to argue why Huawei was a threat to national security.
None of this happened because of a few smartphones that were sold, but it also affected this area of the group. Xiaomi is completely different, focuses directly on products for consumers.