US adds Xiaomi to list of alleged Chinese military companies

by Joseph K. Clark

“The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities.”

Xiaomi denies its connection to the Chinese military and said that it will take steps to protect the Company and its shareholders. It said in a statement:

“The Company reiterates that it provides products and services for civilian and commercial use. 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.”

 Chinese military companies

CNBC reports Xiaomi’s shares fell 10.6 percent at the open on Friday (China time) after the news broke. The US military blocklist is separate from the entity list, the country’s trade blocklist preventing US companies from working with Huawei. Aside from Xiaomi, the administration has also added planemaker Comac to the military blocklist, where it joins state-owned oil giant CNOOC and China’s largest chipmaker SMIC.

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