What bomb the Trump administration unleashed a week after the end of its administration: Xiaomi joins list of blocked Chinese companies after adding to so-called entity list on Thursday. This will make it harder to export that manufacturer’s products to the United States, and could also cause serious difficulties with American hardware and software.
With the change of government from Donald Trump to Joe Biden, we all expected the US trade administration to relax its demands on certain Chinese companies, such as Huawei. This international company causes a notable decline in its activities after Trump banned it commercially. No Google software, no processors, no possibility of marketing your 5G drive … A disaster that Xiaomi could now suffer
U.S. Department of Commerce Adds Xiaomi to Restricted Company List
We all have in mind that Huawei suffers from the American veto since, almost literally, cannot develop new smartphones. With this scenario, which does not appear to be resolved in the short term, Xiaomi could join Chinese companies stranded after the US administration added it to the entity list.
List of entities or list of entities specifies which companies outside the United States have a free hand to do business with companies in the country. In other words, the administration can veto the imp ortation of products manufactured by the companies included in the list of entities, also may block trade for U.S. companies with ban
The move does not imply a direct blockade or the inability to use software or hardware from the United States, it is a warning to American companies who want to trade with Xiaomi
As confirmed by the Financial Times and confirmed by the Pentagon itself, United States urgently put new trade rules in place to ease blockade of foreign companies, especially Chinese. With this urgent processing, and a few days after Trump left government, the Commerce Department took the opportunity to include Xiaomi and Cnooc, the China National Offshore Oil Corporation.
It is still too early to know what the American blockade will entail for Xiaomi: we must wait for the administrations and companies concerned to make a declaration.
Via | Financial times