“The Department is determined to highlight and counter the People’s Republic of China’s (PRC) military-civilian merger development strategy, which supports the modernization objectives of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise that by even the VRC companies, universities and research programs that look like civic entities. ”
However, Xiaomi has denied any involvement in the Chinese military, saying it will take steps to protect the company and its shareholders. It says in a statement:
“The company reiterates that it provides products and services for civil and commercial use. The Company confirms that it does not own, control or be affiliated with the Chinese Army and is not a ‘Communist Chinese Military Company’ as defined under the NDAA. ”
CNBC reported that Xiaomi’s shares fell 10.6 percent on Friday (China time) after the news broke. The US military blacklist is separate from the entity list, the country’s trade blacklist that prevents US companies from working with Huawei. Apart from Xiaomi, the government has also added planner Comac to the military blacklist, joining state-owned oil giant CNOOC and China’s largest chipmaker SMIC.