C114 News January 15 (Andy) Xiaomi Group (stock code 1810) issued a clarification at noon today in response to the U.S. government’s blacklisting of nine Chinese companies, including Xiaomi, so-called “related to the Chinese military” The announcement stated that: Xiaomi Group has always adhered to legal and compliant operations, and abides by the relevant laws and regulations of the place where it operates. Its services and products are used for civilian or commercial use, and confirms that Xiaomi is not owned, controlled or related by the Chinese military, nor is it the US NDAA. Chinese military company as defined under the law.
Regarding the issue that the industry is more concerned about, “Whether it will affect the continued use of US supplier chips in Xiaomi mobile phones after being blacklisted by the US government”, Xiaomi did not mention in the announcement.
Xiaomi Group noted that the U.S. Department of Defense issued a news on January 14 (U.S. time), stating that the company was included in the relevant list under Section 1237 of the National Defense Authorization Act for the Fiscal Year of 1999.
Xiaomi Group stated in the clarification announcement: The company has always adhered to legal and compliant operations, and abides by the relevant laws and regulations of the place where it operates, and its services and products are used for civilian or commercial use. The Company confirms that it is not owned, controlled or affiliated by the Chinese military, nor is it a Chinese military company within the meaning of U.S. NDAA law. The company will take appropriate measures to protect the interests of the company and shareholders. The Company is reviewing the potential consequences of the incident in order to more fully understand its impact on the Group, and will issue further announcements in due course.
At the same time, Xiaomi’s official Weibo, named “Xiaomi Company Spokesperson”, also issued an announcement saying: “Xiaomi Company is currently operating normally.”
According to Reuters, the U.S. government on January 14 added nine Chinese companies to a so-called “Chinese military-related” blacklist, including aircraft maker COMAC and mobile phone maker Xiaomi. According to the relevant investment ban, US investors need to sell their shares in “blacklisted” companies before November 11 this year.
On the morning of January 15, Xiaomi Group fell more than 11% at the opening, and its market value evaporated nearly 100 billion Hong Kong dollars. Industry insiders believe that the Trump administration, which has been in office for less than a week, has not stopped its groundless suppression of Chinese companies.