China tech giant Xiaomi dives 11% after US blacklisting

Shares in Xiaomi collapsed on Friday after the United States blacklisted the smartphone giant and a host of other Chinese firms as the Trump administration aims to cement its trade war legacy against Beijing.

The flurry of last-minute blacklistings is the coda to four years of aggressive diplomatic and trade policies towards rival China under President Donald Trump.

With just six days to go before Trump leaves office, US officials made a series of announcements targeting Chinese firms including state oil giant CNOOC, Xiaomi and embattled social media favourite TikTok.

Xiaomi — which overtook Apple last year to become the world’s third-largest smartphone manufacturer — was one of nine new firms classified by the Pentagon as “Communist Chinese military companies”.