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US blacklisted Xiaomi for award to its founder from the Chinese Communist Party
In mid-January, the administration of then US President Donald Trump blacklisted several Chinese companies, including Xiaomi. They were accused of having very strong ties with the Chinese military and the country’s communist government.
According to the authoritative Wall Street Journal, Xiaomi was blacklisted, among other things, because its founder, Lei Jun, was awarded the Outstanding Builder of Chinese Socialism. In response to the company’s blacklisting, it issued a public statement stating that Xiaomi is not affiliated with the Chinese government or military. The company emphasized that it continues to abide by all legal protocols in its business operations and the US government has no evidence of any wrongdoing on its part.
Nevertheless, the American side has reason to believe that the Chinese military-industrial complex relies on private companies. US concerns are raised by the fact that Lei Jun received a high government award after Xiaomi announced significant upcoming investments in research and development in the fields of 5G and artificial intelligence. It is worth noting that these two sectors have been the focus of the Chinese military in recent years. As the Wall Street Journal reports, it was precisely this suspicious set of circumstances that led Xiaomi to be blacklisted by the Trump administration.
Xiaomi said it will use all legal avenues to recover damages caused by unfair blacklisting by the US government. Note that as a result of this, the value of the company’s shares dropped noticeably. Xiaomi has already filed a lawsuit challenging the blacklisting, but it is too early to judge the outcome of the case.