Denial Of Xiaomi Banned By The US Because It Was Considered A Chinese Communist Military Company

Ilustrasi Xiaomi (Image Credit: Wccftech)

JAKARTA - Xiaomi is on the blacklist of companies banned by the United States (US) Government. The decision was taken after the US Department of Defense categorized Xiaomi as a military company belonging to communist China.

With this move, US investors will no longer be able to invest in companies that are specifically blacklisted. To this accusation, Xiaomi gave its response through a clarification uploaded on the official Xiaomi blog.

"The company (Xiaomi) has complied with the law and operates in accordance with the relevant laws and jurisdictional regulations in conducting its business," wrote Xiaomi in the company blog, Sunday, January 17.

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- Xiaomi (@Xiaomi) January 15, 2021

Xiaomi also emphasizes that the products it makes are only used by civil society. Moreover, used or affiliated with the Chinese military.

"The company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not the" Chinese Communist Military Company "as defined by the NDAA law," Xiaomi wrote in its official statement.

Xiaomi further said, the company said it would take appropriate action to protect the interests of the company and its stakeholders. Xiaomi also said that it would make further announcements later.

According to China's Ministry of Foreign Affairs, this US move abuses state power. "We will take necessary steps to protect the legitimate interests of Chinese companies," was quoted as saying by Reuters.

Apart from Xiaomi, there are eight other Chinese companies that have been blacklisted. To date, the Pentagon has added a total of 35 companies blacklisted under the new NDAA law, including Chinese oil company CNOOC and chipmaker SMIC.

On the other hand, the Donald Trump administration, which is only counting the days, has not provided any evidence regarding Xiaomi or other companies' ties to the Chinese military. Xiaomi's blacklisting was mentioned very suddenly and unexpectedly considering that Xiaomi is basically a smartphone and electronics company.

Prior to this step, the Trump administration focused more on companies engaged in telecommunications (Huawei), the in-flight self-surveillance industry (Comac), aerospace, shipbuilding, chemicals, construction, and other forms of infrastructure.