Xiaomi has released a statement saying it has no ties with the Chinese military, following allegations by the US government that it does.
“The company confirms that it is not owned, controlled, or affiliated with the Chinese military, and is not a ‘Communist Chinese military company’ defined under the NDAA,” the company said in a statement on Friday.
The company further added that the company has been “operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its business”.
“The company reiterates that it provides products and services for civilian and commercial use,” the statement said.
It comes after the United States Department of Defense added the Chinese hardware manufacturer to a list of alleged Communist Chinese military companies.
Alongside Xiaomi, Advanced Micro-Fabrication Equipment, Luokong Technology, Beijing Zhongguancun Development Investment Center, Gowin Semiconductor, Grand China Aie, Global Tone Communication, China National Aviation Holding company, and Commercial Aircraft Corporation of China were also added additions to the list.
Other Chinese companies that were already on the list included Huawei, Hikvision, Inspur, Panda Electronics, and Semiconductor Manufacturing International Corporation.
Outgoing and twice-impeached US President Donald Trump signed an executive order on 12 November 2020 that forbids trading and investing in any of the listed companies, and bans trading in any new companies 60 days after the US places such a Communist Chinese military company label on them.
The New York Stock Exchange struggled to handle the consequences and interpretation of the listings, saying it said would delist a trio of Chinese telcos — China Telecom, China Mobile, and China Unicom Hong Kong — before changing its mind, and then reverting to its original decision.
In the executive order, Trump said China was “exploiting United States capital” to boost and update its military, which he claimed would allow Beijing to threaten the US and its overseas forces, as well as develop “advanced conventional weapons and malicious cyber-enabled actions against the United States and its people”.
“Through the national strategy of Military-Civil Fusion, the PRC increases the size of the country’s military-industrial complex by compelling civilian Chinese companies to support its military and intelligence activities,” Trump said.
“Those companies, though remaining ostensibly private and civilian, directly support the PRC’s military, intelligence, and security apparatuses and aid in their development and modernisation.”
Trump also recently signed an executive order to ban eight Chinese apps — Alipay, CamScanner, QQ Wallet, SHAREit, Tencent QQ, VMate, WeChat Pay, and WPS Office — citing national security concerns.
