Smartphone maker Xiaomi became the latest industry player to face increased restrictions from the US government, being added to a list of companies deemed to have links with the Chinese military.
In a statement, the US Department of Defence (DoD) said it had nine additional “Communist Chinese military companies” operating directly or indirectly in the US, including Xiaomi.
The vendor surpassed Apple as a top three global smartphone maker in Q3 2020 in terms of shipments. Xiaomi joins Huawei, chipmaker SMIC, and China Mobile, China Unicom and China Telecom on the US list.
Huawei, notably, is also on a Department of Commerce list, which restricts its access to US suppliers over national security concerns.
The DoD list aims to comply with an executive order signed by Trump in November 2020, and restricts domestic investment in companies the department claims are owned or controlled by the Chinese military.
This month, the New York Stock Exchange delisted the three Chinese operators to comply with the order.
The move against Xiaomi came just hours after the US moved to restrict purchases of network technology from a number of countries, including China, citing concerns about supply chain security.
In response, Xiaomi said it complies with the laws and regulations where it does business, and provides products and services for civilian and commercial use.
“The company confirms that it is not owned, controlled or affiliated with the Chinese military and is not a communist military company”.
It added it was reviewing potential consequences to understand the impact of the move. Xiaomi is listed in Hong Kong and the restrictions could mean US investors are forced to divest their holdings in the company.