The “real” reason the US blacklisted Xiaomi – Latest News

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Former US President Donald Trump had a delicate relationship with China, particularly with trade and technology companies. In the final days of his presidency, Trump and his administration blacklisted Xiaomi for “alleged” ties to the Chinese military. The U.S. Department of Defense listed Xiaomi and the Chinese company has defiantly denied any such allegation. “The company has complied with legal requirements and complied with the relevant laws and regulations of the jurisdictions in which it does business. The company affirms that it offers products and services for civil and commercial use. The company certifies that it is not owned, controlled by, or affiliated with the Chinese military and is not a “Chinese Communist Military Company.”

However, a new report from the Wall Street Journal now reveals the real reason the US blacklisted Xiaomi. The U.S. Department of Defense cited a legal filing that an award for Lei Jun, Xiaomi’s CEO, was the main reason for the company’s blacklist. In 2019, 100 executives – including Lei – were awarded the “Outstanding Builder of Socialism with Chinese Features” award.

Now if you are wondering how an award could lead to a pretty drastic move, here is why. The award was presented by MIIT, a government agency that deals with China’s technology and industrial policy. According to the report, the agency is responsible for China’s “civil-military fusion,” and for getting China to work with private companies to develop technology for the country’s military.

Interestingly, the award for the CEO is advertised on his bio page on the company’s corporate website. According to several reports, Xiaomi has taken the legal route to remove itself from the US blacklist. The company has not commented that the award is the cause of its problems in the United States.

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