After being accused as the โCommunist Chinese military companyโ by the US government, Xiaomi has released a statement denying it. The company has reiterated that itโs 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 presidentโs 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 nationโs 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 theyโre 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 โThe company confirms that it is not owned, controlled, or affiliated with the Chinese military, and is not a โCommunist Chinese military companyโ defined under the NDAA.โ
Further, it reaffirmed that itโs complying with all the โrelevant laws and regulations of jurisdictions where it conducts its businessโ. Also, it said itโs only providing products and services for โcivilian and commercial use.โ
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, Trumpโs administration hasnโt provided any evidence of linking Xiaomi, or any other in the list to the Chinese military.