Just days before the end of Trump’s administration, a bomb arrives that could rock a brand as popular as Xiaomi. Its inclusion on the list of U.S. restricted companies puts this giant in serious trouble.
With Xiaomi’s entry on the so-called Entity list, this Chinese company could be affected at the same level as Huawei in terms of acquisition of components and inclusion of software such as Google services, something that would greatly limit its products. As we have seen in brands like Huawei, their mobile business has been seriously affected by not being able to use Qualcomm processors or other components from companies with strong ties to the United States.
This inclusion in the list of restricted brands has been urgently executed as stated by the Financial Times and is one of the latest restrictive moves by the Trump administration. To see how it affects Xiaomi, one can only wait to see what policy Joe Biden will execute when he enters office and at what level U.S. companies will apply this limitation to Xiaomi, a company that is not a threat in terms of controlling the implementation of 5G networks.
For now, Xiaomi’s inclusion on the Entity List implies only a possible blockage in relations with U.S. companies, is not executed yet. It remains to be seen how the different departments of the administration will respond and what orders will be sent to companies in the sector, but for now it is bad news for Xiaomi without any doubt.