The Defence Department of US has now blacklisted 9 more Chinese entities for being controlled by Chinese military, phone maker Xiaomi is one of those 9 entities.
In June last year the department released its initial list of blacklisted firms to Congress, for having ties with Chinese military while operating in civilian firms. Later in December last year it again added some more firms in the list. With these 9 more firms the list has now total of 40 blacklisted companies.
With blacklisting the Defence Department also released names of additional “Communist Chinese military companies” which are operating directly or indirectly in the United States in accordance with the statutory requirement of Section 1237 of the National Defense Authorization Act for Fiscal Year 1999, as amended.
Trump had also signed an executive order in November last year, which prohibits Americans from investing in the blacklisted firms. So, the shareholders of these companies must get rid of their holding by November 11, 2021.
Xiaomi being one of the 9 blacklisted companies, the other 8 include Advanced Micro-Fabrication Equipment Inc. (AMEC), Luokong Technology Corporation (LKCO), GOWIN Semiconductor Corp, Beijing Zhongguancun Development Investment Center, Grand China Air Company (GCAC), Global Tone Communication Technology (GTCOM), Commercial Aircraft Corporation of China (COMAC) and China National Aviation Holding Co. Ltd. (CNAH).
The Defence Department also said in a statement that “The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities”.
