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Xiaomi Gets BANNED

Xiaomi Gets BANNED

 

Xiaomi Gets BANNED

Now that Huawei is out of the picture, it
seems Trump has now set his eyes on the next big Chinese smartphone company, Xiaomi, which
also happens to be the third biggest smartphone company ahead of Apple and behind Samsung
and Huawei. On January 14th Trump administration has officially put Xiaomi and nine other companies on its blacklist of companies with ties to the Chinese military.


Yes, the US Department of Defense is now designating
Xiaomi as a “Chinese Communist military company,” meaning it’s now vulnerable
to Trump’s executive order that bans the US from investing in such companies. Now, this ban is not quite the same as the situation that Huawei is facing right now,

Xiaomi BANNED

but being added to a US blacklist means that Xiaomi will lose US investors. The thing is this is how it all started for Huawei too a few years ago where they were added to the blacklist first and then put
on the entity list later which literally banned Huawei from using all of the American-made
technologies including Android and the Chip making technologies. You see by placing Xiaomi on a blacklist rather than issuing an outright ban, the US government is not quite barring trade completely with
the Chinese firm. I mean this will not directly affect Xiaomi’s supply chain, and their phone making process. Xiaomi can still import US technology without a license.

But like I've said, it seems like this is a start and if the firm were to be placed upon the Entity List — such as Huawei then Xiaomi indefinitely will end up like Huawei. By the way, Xiaomi has reacted to this and
released a statement. Basically, they said that they are “operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses.” They say that they are not owned, controlled, or affiliated with the Chinese military, 

Xiaomi Blacklist

and is not a ‘Communist Chinese Military Company’. They said they're now reviewing the potential
consequences of this before taking action. Now, What this means for the future of Xiaomi
is not immediately clear, but for now, their stock price is plummeting, Xiaomi is losing
billions from their market capitalization but fortunately for the company it won’t affect their supply chain for now but would end up ugly if the US takes further action. Personally, I don't think Xiaomi deserves
this as they are essentially a smartphone and electronics company.

Huawei on the other hand makes their own chipsets, makes network equipment and their chairman and CEO is strongly involved with the Chinese military. On top of that Huawei has done a lot of shady stuff in the past including stealing a lot of American technologies. So Huawei in a way deserves everything that's
happened to them. But Xiaomi on the other hand does not deserve this at all. Funny how they are blacklisting Xiaomi when OnePlus which is another Chinese company has a bigger presence in the United States and they are not black-listed.



It seems any Chinese mobile company that becomes dominant in market share will be axed by the US government.Honestly, the actions of the US government has created a terrible landscape for the mobile industry, especially for the android market.I mean there's less and less competition now than there's a year ago. Huawei was the main competitor for Samsung and now with the ban, they can't compete. Xiaomi was set to take the place of Huawei and it seems they might also end up like Huawei. Once dominant companies like LG, HTC, and Sony are a shell of what they were back then. Google quit the flagship segment.

I mean there's no one in the Android market that can essentially compete with Samsung right now and that's a bad thing because with no competition Samsung will become like Apple by offering iterative upgrades year over year something we already are seeing with the S21. Plastic material, worse screen, fewer features, removing accessories to boost their profits. Anyway, Xiaomi's best hope right now is Joe
Biden, it's quite possible that once the Biden administration takeover, they might overturn
this decision. But for now, things aren't looking good for Xiaomi.

Anyway, let me know what do you think about
this down in the comments and as always I'll

see you tomorrow...Peace out!

 


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