Xiaomi refutes alleged links with Chinese military, says analysing outcome of US blacklisting

Chinese smartphone giant Xiaomi has denied allegations of its affiliations with the Chinese military following its blacklisting by US officials on Friday.

“The Company has been in compliance with the law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The Company reiterates that it provides products and services for civilian and commercial use,” said a Xiaomi spokesperson.

Xiaomi, which became the third-largest smartphone maker in the world last year by overtaking Apple, is one of the nine Chinese companies blacklisted by the Pentagon on Friday on the grounds of being allegedly controlled by the Chinese military.

“The Company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not a “Communist Chinese Military Company” defined under the NDAA. The Company will take the appropriate course of actions to protect the interests of the Company and its shareholders,” the spokesperson further said.

The blacklisting caused its shares to tank by about 11% and they were trading at 29.10 HKD at 1:48 pm GMT.

“The Company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The Company will make further announcements as and when appropriate,” it added.

The other blacklisted firms include Micro-Fabrication Equipment Inc. (AMEC), Luokong Technology Corporation (LKCO), Beijing Zhongguancun Development Investment Center, GOWIN Semiconductor Corp, Grand China Air Company (GCAC), Global Tone Communication Technology (GTCOM), China National Aviation Holding Co. Ltd. (CNAH) and Commercial Aircraft Corporation of China (COMAC).