On January 20, Joe Biden will take oath as the new President of the U.S. and this day will also mark the last day of the current President Donald Trump in the administration. But, ahead of the end of his term, the Trump administration has launched a new attack on the Chinese.
On Thursday, the Trump administration added nine Chinese firms to the blacklist of so-called alleged Chinese military companies, including a well-known smartphone maker – Xiaomi, reports Reuters.
Following the blacklisting, these companies will be barred from investing in the U.S. and existing investors from the U.S. have to divest their holding on these blacklisted firms by the deadline of November 11, 2021.
Following this news, Xiaomi’s share has plunged 11 percent, which is a big drop in terms of its investment.
The latest move from the Trump administration is part of his tough-on-China policy, which he wants to strengthen further during the last days of the presidency. So far, there 35 companies that have been blacklisted by the U.S. government including China’s chipmaker SMIC.
After its addition, important partners such as Google has stopped certifying new Huawei smartphones for Google Mobile Services (GMS) and Huawei then have to shift to the Huawei Mobile Services (HMS). Also, Huawei has lost access to the important chip supplies due to the import ban.
However, the first wave of the ban was proven unaffected because Huawei had established other supply chains but in 2020, the Trump administration further expanded the reach of Entity List. Under this expansion, new companies cannot supply crucial components to the Chinese tech giant, it’s also prohibited from manufacturing new chipsets via TSMC.
The U.S. government claims that the Chinese companies are under the control of the Chinese government and shares users’ data but to date, there is no concrete proof of such activity has been found or shown in public. As the blacklisting of more Chinese companies continues.