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US blacklists Xiaomi – suspected of having links with the Chinese military

Pursuant to a 1999 law, the US Department of Defense blacklisted Xiaomi and eight other Chinese companies due to possible links with the Chinese military. American investors are required to stop cooperating with these firms and sell their assets in them by November 11, 2021. At the time of writing, neither the company nor the Chinese Embassy in Washington have commented on the situation. This was reported by the authoritative foreign edition of Reuters.

According to a 1999 law that guided the US Department of Defense, the agency was required to compile a directory of companies owned or controlled by the Chinese military. It is noteworthy that this law was not implemented until 2021. Currently, there are 35 organizations on this blacklist, including the oil giant CNOOC, the aerospace manufacturer COMAC and the market leading chipset manufacturer SMIC.

In addition to Xiaomi, in a recent decree, the US authorities have added eight other companies to the corresponding list:

  • Advanced Micro-Fabrication Equipment Inc. (AMEC)
  • Luokong Technology Corporation (LKCO)
  • Beijing Zhongguancun Development Investment Center
  • GOWIN Semiconductor Corp
  • Grand China Air Co. Ltd. (GCAC)
  • Global Tone Communication Technology Co. Ltd. (GTCOM)
  • China National Aviation Holding Co. Ltd. (CNAH)
  • Commercial Aircraft Corporation of China, Ltd. (COMAC)

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