It’s only a week before he goes out of The White House but President Trump has added more companies to the list of Chinese firms blacklisted in the country. Some of the firms added were Comac and Xiaomi. This means many will be affected as there will definitely be limits to the business flow. We have seen how the US trade ban has greatly impacted Huawei’s mobile phone business. It’s not the only one affected as even those groups working with the top Chinese OEM also had to make adjustments.
There is no official announcement by either the Trump administration or the firms blacklisted but according to our source, nine Chinese businesses have been added to a blacklist. Planemaker Comac is part of the list. Chinese maker Xiaomi also joins the list.
With this move, this means these groups will be subject to a US investment ban. American investors are forced to divest their holdings of the firms by November 11 of this year. No response was provided by the Chinese Embassy in Washington yet.
US Investment Blacklist
This business move isn’t entirely new. The Defense Department is actually required by a 1999 law to compile a list of companies controlled or owned by the Chinese military. The Pentagon only complied this year with about 35 companies in the list.
Some of the big names we know are SMIC as we mentioned before and CNOOC (chipmaker and oil company). President Trump has just made things more difficult by banning investment on firms in the blacklist.
Let’s see how things will further change not only for the Chinese companies but also for the investors in the US. We’re curious how Xiaomi will survive if it suffers the same fate as Huawei.