It appears that Trump is leaving his tasks completed before leaving his post as President of the United States. That is at least what we can understand with one of the latest Reuters publications, who apparently have been able to access a document that confirms the next Chinese companies that will become part of a blacklist. And who has been one of the lucky ones? Well, neither more nor less than Xiaomi.
Xiaomi runs out of US money
Among many of Xiaomi’s plans , the brand’s main objective was to market in the great American market. The United States continued to be a completely unknown area for the Chinese company, and seeing its progression globally, entering successfully would mean exponential growth worldwide.
But the plans will have to be canceled, or at least postponed, since according to a document reviewed by Reuters, the Trump Administration last Thursday included 9 new Chinese companies that allegedly collaborate militarily with the Chinese government, among which is Xiaomi.
No investments
The good news for the manufacturer is that the list in which it has been included is one in which those companies that supposedly collaborate with the Chinese army are cited, and not the list in which Huawei was introduced last 2019. Although the companies do not carry out commercial operations (as could be the case with Xiaomi, beyond buying electronic components from US companies), the regulations in this list prohibit the companies included from receiving any type of investment from US investors, or whatever itself, Xiaomi would stop seeing American money in case they are receiving it.
All those investors who have stakes or shares in Chinese companies, must withdraw their positions before November 11, 2021, so that throughout this year many Chinese companies could receive a hard blow in the form of cuts.
How does Xiaomi stay?
At the moment the situation is a bit up in the air, since, by not marketing in the United States, the situation could affect it only at the level of elimination of shareholders, which, beware, is not little, but it would not suffer as much as Huawei is doing. What is very likely is that the manufacturer’s shares will fall precipitously.
After overtaking Apple as the world’s third-largest manufacturer, Xiaomi’s upward streak could be immediately affected by these measures. Recall that Huawei lost many allies due to fear of possible retaliation by the United States, so Xiaomi could suffer a similar ordeal if the situation worsens.