After being accused as the “Communist Chinese military company” by the US government, Xiaomi has released a statement denying it. The company has reiterated that it’s operating as per all the local laws, and provides products and services to only civil and commercial people.
Xiaomi is Not Owned by Chinese Military
The US outgoing president’s quest for wiping out suspicious Chinese companies from the country has poached nine companies lately. The list includes prominent names like Xiaomi, Grand China Air, GOWIN Semiconductor Corp, etc.
The US Department of Defense has blacklisted these companies, calling them Communist Chinese military Companies having ties with their nation’s military. This order will prompt the US investors to withdraw all their holdings in the Chinese companies before November this year.
While this hit the company significantly, these are different from Entity List and can do business in the US without any license. Companies like Huawei, HikVision, SMIC, DJI, etc were added to Entity List, meaning they’re barred from operating in the US and need a special license to use the US technology.
Now, after three days of this fresh allegation, Xiaomi has come up with a statement saying “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.”
Further, it reaffirmed that it’s complying with all the “relevant laws and regulations of jurisdictions where it conducts its business“. Also, it said it’s only providing products and services for “civilian and commercial use.”
While this may not get the company out of the blacklist, it at least gives the stakeholders an official word from the company regarding the allegation. Although, Trump’s administration hasn’t provided any evidence of linking Xiaomi, or any other in the list to the Chinese military.