US adds Xiaomi, others to trade blacklist over alleged Chinese military links

The U.S. Department of Defense added smartphone-maker Xiaomi Corp. and eight others to its list of companies with alleged ties to Chinese military activities.

The list also includes Advanced Micro-Fabrication Equipment Inc., Beijing Zhongguancun Development Investment Center, China National Aviation Holding Co. Ltd., Commercial Aircraft Corporation of China Ltd., Global Tone Communication Technology Co. Ltd., GOWIN Semiconductor Corp., Grand China Air Co. Ltd. and Luokong Technology Corp., a Jan. 14 news release said.

The Defense Department claimed that the companies acquire and develop advanced technologies that can be accessed to support the Chinese People's Liberation Army.

U.S. investors will be required to divest their holdings in the blacklisted companies by Nov. 11, 2021, according to an executive order signed by President Donald Trump in November 2020.

The trade blacklist already includes telecom equipment supplier Huawei Technologies Co. Ltd., chipmaker Semiconductor Manufacturing International Corp., China Telecom Corp. Ltd., China Mobile Ltd., and Hangzhou Hikvision Digital Technology Co. Ltd. Washington recently scrapped plans to add Alibaba Group Holding Ltd., Baidu Inc. and Tencent Holdings Ltd. to the list.