The U.S. Department of Defense under the outgoing Trump administration has named nine Chinese firms to an investment blacklist, including Chinese phone maker Xiaomi.
Reason
The department claims this is a list of companies that are alleged to be “Communist Chinese military companies” that are operating either directly or indirectly within the United States.
This is in accordance with the statutory requirement of Section 1237 of the National Defense Authorization Act for Fiscal Year 1999.
What law commits
Under Section 1237 of the NDAA for FY 1999, the U.S. defines “Communist Chinese military companies” as “any person identified in the Defense Intelligence Agency publication numbered VP-1920-271-90, dated September 1990, or PC-1921-57-95, dated October 1995, and any update of those publications for the purposes of this section” as well as “any other person that–(i) is owned or controlled by the People’s Liberation Army; and (ii) is engaged in providing commercial services, manufacturing, producing, or exporting.” It’s unclear how Xiaomi fits this bill, as the company has mostly stuck to making consumer products.
Existing Investors
The American investors who has already invested in those companies they will need to divest their holdings in each of the blacklisted firms by November 11, 2021.
–The content is edited from the main source “XDA-developers” all the credit of this story goes to them.
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