What only happened? Equally Donald Trump approaches the end of his term, the president is putting the pressure on a Chinese giant—but this fourth dimension, information technology's non Huawei. The outgoing administration has designated Xiaomi, the globe's third acknowledged telephone maker, a 'Communist Chinese military machine company,' adding it to a blacklist that could force U.S. investors to divest.

As noted by Reuters, a 1999 law requires the Defense force Department to compile a catalog of companies endemic or controlled by the People'southward Liberation Army. The Pentagon has added 35 companies so far, including chipmaker SMIC.

Huawei is on the list, too, due to its telecoms infrastructure business that is worrying some governments.

Xiaomi recently announced the Mi 11, its latest smartphone

Both Huawei and SMIC are too part of the US Commerce Department's 'entity listing', which prevents American organizations from exporting to the blacklisted companies without a government license. Hence the lack of Google Apps and U.S. hardware in the latest Huawei phones.

The newly added companies will exist subject to an investment ban that forces American investors to divest their holdings on November 11, 2022—bold the Biden administration doesn't overturn the social club.

Xiaomi, which was accused of recording users' incognito web browsing last year, currently takes the third-largest share of the global smartphone market place, sitting backside number one Samsung and second-place Huawei, according to IDC.

Xiaomi, in a statement to The Verge, said that it is "operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses." The spokesperson contends that Xiaomi "is not owned, controlled or affiliated with the Chinese military, and is not a 'Communist Chinese Armed services Visitor' divers under the NDAA [National Defence force Authorization Deed]."

The company is reviewing the consequences of the designation before taking activeness.