Xiaomi is the latest to be blacklisted by the Trump administration

Xiaomi is the latest to be blacklisted by the Trump administration

It remains to be seen if the executive order may be overturned by the Joe Biden administration, which takes over on January 20.

Being placed on the list of "Communist Chinese military companies" means that U.S. investors can "no longer invest in Xiaomi". The ban also doesn't apply to sales of hydrocarbons such as crude oil and also wouldn't affect joint ventures between Cnooc and Western companies, a senior administration official, speaking on customary condition of anonymity, told reporters in a briefing Thursday.

The Trump administration has designated Xiaomi as a "Communist Chinese military company" which would qualify it to be one of the blacklisted companies under the Trump Administration's Executive Order from November that bars American securities and investment companies from putting capital resources on investments that fund "Communist Chinese military companies".

Since the US Govt's Defense Department and Commerce Department have blacklisted 9 Chinese companies, investors will be mandated to sell their investments in these firms, by November. "This action is against the trend of the times and is against its self-touted market competition and worldwide economic trade rules", he said.

The US Department of Defence says, without evidence, that it is among companies that appear civilian, but is part of a Chinese military strategy. A spokesperson for Xiaomi had no immediate comment.

The territorial dispute has festered for years, with Beijing ignoring U.S. protests as it built a series of artificial islands to expand its military and commercial reach in the region that is believed to have valuable oil and gas deposits. Taiwan, The Philippines, Brunei, Malaysia and Vietnam all have claims.

Founded in 2010 and nicknamed "China's Apple" in its early days, the Beijing-based smartphone maker has since made a name for itself by offering products with premium specifications at affordable prices. The Chinese smartphone giant has refuted the claims of being affiliated with the Chinese military, and said it is not a "Communist Chinese Military Company".

The behaviors are "the large-scale reclamation, construction, or militarization of disputed outposts", and China's "use of coercion against Southeast Asian claimants to inhibit their access to offshore resources".

"CNOOC has repeatedly harassed and threatened offshore oil and gas exploration and extraction in the South China Sea, with the goal of driving up the political risk for interested foreign partners, including Vietnam", the Commerce Department said.

San Francisco, After Huawei and ZTE, the United States government has now taken on the Chinese conglomerate Xiaomi, blacklisting it as a "Communist Chinese military company".

The Commerce Department's "Entity List" requires firms to be granted a license before they can receive exports of high-tech items from USA suppliers.

Chen Weidong, the Beijing-based founder of independent consultancy DFS Energy, said CNOOC had very limited exposure to USA expertise.

One in every four South Africans now uses a cellphone from a company targeted by U.S. sanctions. It joined Hong Kong's Hang Seng Index in September after grabbing market share from Huawei Technologies as USA sanctions on Huawei deepened.

Besides, 8 other Chinese firms too have been blacklisted by the US Govt in a sudden, unexpected move. In the Defense list of nine companies, Xiaomi is joined by lower profile firms, including Luokong Technology Corp., Gowin Semiconductor Corp. and Global Tone Communication Technology Co.

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