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Earlier today, news broke out stating that Xiaomi was banned by the Trump administration and whatnot. To which I say, the headlines are very misleading and most of them are just clickbait. XDA Developer’s headline was the clearest and most concise, stating that “U.S. bans Americans from investing in Xiaomi, citing ties to Chinese military”, which was exactly what happened.

So the whole story here is fairly simple. Trump’s administration still has a few days left before Joe Biden officially becomes the new president. So, before those days are up, the U.S. Department of Defense – which is still under the Trump administration, adds a total of 9 Chinese firms into investment blacklist – Xiaomi included.

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The reason behind this – well, they cited that these companies are “Communist Chinese military companies”.

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And for us consumers and customers of Xiaomi and their products, it doesn’t really affect us – at least not directly. Now, U.S. investors cannot pump cash into Xiaomi because of the ban – and that’s the entire story.

Xiaomi is not a part of the Entity List, which is what Huawei is a part of. This means that Xiaomi can still use Google Mobile Services and trade with the U.S. without needing a license from the government for exemption.

Xiaomi also issued an official statement about this whole situation.

The Company has been in compliance with 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 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. The Company will take appropriate course of actions to protect the interests of the Company and its shareholders.

 

The Company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The Company will make further announcements as and when appropriate.

In whichever case, it’s a developing story at this point in time. But we do know for a fact that Xiaomi is only getting a ban regarding its investors, which is different from Huawei’s total ban.

In short, Xiaomi can still use Google Mobile Services.


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