US blacklists Xiaomi: Tech corp refutes Chinese military affiliation claim

After the US government blacklisted Chinese conglomerate Xiaomi as a “Communist Chinese military company”, the company on Friday said it is reviewing the potential consequences to develop a fuller understanding of its impact on the Group.

Xiaomi’s stock nosedived more than 10 per cent in early Friday trading after the news broke.

In a fresh list, the US Department of Defense targeted Xiaomi, which means that the company is also vulnerable to the outgoing President Donald Trump’s executive order that can ban the US firms from investing in such companies. The move may also force US companies and other investors to divest in Xiaomi this year.