USA also blacklist Xiaomi – soon no more Google apps?

In the last few days of the Trump administration, accusations against a Chinese electronics company have been raised again. This time the smartphone and notebook manufacturer Xiaomi ends up on the blacklist. Will the manufacturer soon face a fate like Huawei? So can Google services no longer be used on smartphones in the future? TECHNOLOGY BUTTON explains.

In May 2019, the incumbent US government imposed a trade embargo on the Chinese electronics company Huawei. Allegations of espionage sparked the conflict – Google then had to end the collaboration. Now the US government has blacklisted Xiaomi because of possible connections to the Chinese military.

The allegations against Xiaomi 

The US government accuses the electronics company of having close ties to the Chinese military. According to the Trump administration, the connections also run through government circles. It has not been confirmed whether this is specific military technology or allegations of espionage. In an official statement, Xiaomi vehemently rejects the allegations. The company operates in accordance with the law and in accordance with the relevant laws and regulations of the countries in which it does business. It also denies that the company is owned or associated with the Chinese military.

Due to the allegations, the government under President Trump has put Xiaomi on the blacklist. As a result, US investors have to cede their shares in Xiaomi by November 11, 2021. In addition, there is now an investment ban.

Things started similarly for Huawei in 2019, but the situation here quickly deteriorated and US companies were soon banned from doing business of any kind with Huawei. As a result, the Chinese company could no longer install Google services on its smartphones because the necessary licenses were missing. Founded in 2010, Xiaomi initially benefited from these trade restrictions with Huawei. With the official launch of its devices in other European countries, including Germany, and a very good price-performance ratio, the mobile phone manufacturer even made it to third place in the international smartphone manufacturer competition at the end of 2020.

Also read: Huawei sells its affordable brand Honor in order to survive!

Similar consequences as for Huawei?

But can Xiaomi maintain its successful course in terms of current developments, or is the company facing a similar fate as Huawei? Since it is initially about an investment ban, users of a Xiaomi smartphone do not feel any effects at first. A final ban on cooperation with US companies, such as the processor manufacturer Qualcomm or the Android developer Google, is only threatened with the so-called “Entity List”.

Also interesting: Xiaomi Redmi Note 9T – the 5G smartphone at a low price in the check

The incumbent US administration does not have long to extend the requirements. A new president, Joe Biden, will be sworn in on January 20, and it remains to be seen whether he will continue Donald Trump’s China course.

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