Smartphone giant Xiaomi Corp. It became the latest Chinese technology conglomerate to be targeted by the Trump administration, with its US investment sent to the blacklist surprisingly sharply reducing its shares.
Apart from Xiaomi’s wrong-footed analysts and investors. Xiaomi, a consumer electronics company focusing on mobile phones and home appliances, also managed to escape US pressure, as Washington clamped down on Chinese tech groups, including Huawei Technologies Co., over their access to American technology and financing. To curb.
Xiaomi’s shares have more than doubled in the last 12 months and the company is rapidly gaining market share. According to Gartner, in the third quarter of 2020, it surpassed Apple Inc. to become the world’s third-largest smartphone manufacturer.
On Thursday, the US Department of Defense included Xiaomi in the list of companies that it says support China’s military. Under the terms of an executive order issued by President Trump, the designation means that after 60 days, American investors will not be able to buy Xiaomi stock, and they have one year to sell existing holdings.
Xiaomi’s listed shares in Hong Kong fell nearly 14% on Friday before closing 10% lower.