Chinese language smartphone model Xiaomi, till January 2021, had seen rising curiosity and development, because it continued to attempt to fill the void created by the US authorities’s shut-out of Huawei on fears that it has a powerful reference to the Chinese language navy and could possibly be finishing up espionage actions on their behalf. The model had grown quickly in the aftermath of Huawei’s blacklisting to change into the third-largest smartphone producer in the world.

Nonetheless, it bought a impolite shock when the then outgoing authorities of President Donald Trump imposed a ban on the corporate along with seven different Chinese language corporations on the accusation of being owned by the Chinese language navy or having very sturdy ties with the Chinese language communist authorities.

A Wall Road Journal report has now revealed that the explanation for the blacklisting of Xiaomi was that its founder Lei Jun was the recipient of a 2019 award by the Communist authorities titled: Excellent Builder of Socialism with Chinese language Traits. The award was nicely obtained by the corporate, because it was nicely highlighted in the biography of its founder and in the corresponding annual report of the corporate.

In response to the blacklist by the US authorities, Xiaomi had put out a public assertion reaffirming the declare that it has no hyperlinks in anyway with the Chinese language authorities, neither is the corporate owned by the Chinese language navy institution. Xiaomi burdened that the corporate had continued to abide by all authorized protocols in their enterprise operations and had not been discovered to run foul of those by the US authorities. It insisted that it’ll pursue all authorized avenues to hunt redress for the unfair categorization and blacklisting by the US authorities. The corporate’s shares had skilled substantial declines for the reason that January choice, shedding 1 / 4 of its shares (25%) as of this week, and closed at $15.34 per share.

Xiaomi had additionally filed a lawsuit difficult the blacklisting in the US, and an prolonged authorized wrestle has already ensued with the battle shifting to the courts. Nonetheless, it stays to be seen the quantity of proof the US Protection Division can be prepared to make public in help of the blacklist choice.

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