The United States includes Xiaomi in the list of restricted companies

What a bomb the Trump administration has unleashed a short week after the end of his government: Xiaomi joins the list of Chinese companies blocked after adding this Thursday to the so-called Entity List. This will complicate the export of that manufacturer's products to the United States, and could also lead to serious difficulties with US hardware and software.

With the change of government from Donald Trump to Joe Biden, we all expected that the US trade administration would loosen its demands on some Chinese companies, such as Huawei. This international company drags a notable drop in its business after Trump banned it commercially. No Google software, no processors, no ability to market your 5G riding ... A catastrophe that Xiaomi could now suffer.

The US Department of Commerce adds Xiaomi to the list of restricted companies

Xiaomi Redmi Design

We all have in mind what Huawei is suffering from the American veto since, almost literally, is prevented from developing new smartphones. With this scenario, which does not seem to be solved in the short term, Xiaomi could join the blocked Chinese companies after the US administration has added it to the Entity List.

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Entity List or Entity List specifies which companies outside the United States have a free hand to trade with companies in the country. That is, the administration can veto the importation of products manufactured by the companies included in the Entity List, also can block the commercial exchange of US companies with the ban. So Xiaomi could have it difficult from now on.

The movement does not imply a direct blockade or the impossibility of using US software or hardware, it is a warning for US companies that want to trade with Xiaomi

As confirmed by the Financial Times, and confirmed by the Pentagon itself, The United States urgently activated new trade rules to facilitate the blockade of foreign companies, especially Chinese. With this urgent procedure, and a few days after Trump leaves the Government, the Department of Commerce took the opportunity to include Xiaomi and Cnooc, the China National Offshore Oil Corporation.

It is still too early to know what the US blockade will entail for Xiaomi: we have to wait for the administrations and companies involved to pronounce themselves.

Via | Financial times