Washington, January 15: Shares in Xiaomi collapsed on Friday after the US blacklisted the smartphone giant and several other Chinese firms as the Trump administration aimed to cement its trade war legacy against Beijing. Xiaomi shares plunged 11 percent in Hong Kong on Friday after the announcement.
Following this move, US investors can no longer invest in the companies added to this special blacklist. They are barred from purchasing shares and securities of companies like Xiaomi who are a part of this list. United States Blacklists 60 Chinese Companies Including China’s Largest Semiconductor Maker SMIC.
Here's the list of Chinese firms blacklisted:
Other than Xiaomi, the other blacklisted firm include-Advanced Micro-Fabrication Equipment (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 (CNAH) and Commercial Aircraft Corporation of China (COMAC).
All hopes are on the Biden administration which is set to take power from January 20 to overturn this decision. Till then, it has to be seen how Xiaomi and other Chinese companies will react to this sudden blacklisting.
Xiaomi overtook Apple. as the worlds No. 3 smartphone maker by sales in the third quarter of 2020, according to data by Gartner. Xiaomi's market share has grown as Huawei's sales suffered after it was blacklisted by the US and its smartphones were cut off from essential services from Google
(The above story first appeared on LatestLY on Jan 15, 2021 10:31 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).