In a major blow to the company, the United States Department of Defense (DOD) has added Chinese smartphone manufacturer Xiaomi to a blacklist of companies that allegedly are controlled by the Chinese Military. In response, Xiaomi has strongly objected to these claims and denied having connections with the Chinese military.
Xiaomi has been added to the blacklist by the USA DOD under the National Defense Authorization Act of 1999. What this means is that US investors will be forced to sell any shares or holdings in the company by November 11th this year, and will be restricted from doing so in the future.
This blacklist however, is not the same as the Entity list that HUAWEI was added to last year. That list blocks the company from purchasing components doing any business with US companies entirely. It is unclear if Xiaomi will be added to that list in the future.
Xiaomi has come out and denied these allegations, claiming they are not linked to the Chinese military. In a statement, a Xiaomi spokesperson said:
The Company reiterates that it provides products and services for civilian and commercial use. The Company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not a ‘Communist Chinese Military Company’ defined under the NDAA.
Another spokesperson said:
The Company has been in compliance with the law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The Company reiterates that it provides products and services for civilian and commercial use.
The list also mentions 8 other Chinese companies, which can be seen here.