So, Trump Administration’s desperate move is nothing unexpected, although it lacks the viciousness of their Huawei ban.
How is Huawei getting banned different from Xiaomi being blacklisted? Well, Huawei is on the Department of Commerce’s “entity list”. This means no US company or any other company that uses US technology can do business with the Chinese company. Huawei can’t legally import products of US origin.
Xiaomi, however, is only on the Department of Defense’s “Communist Chinese Military Companies” list (Huawei is on this list, too). So, in Xiaomi’s case, only US companies are being deterred from investing in the Chinese phone maker, investing being the keyword here.
It also implies that all American stakeholders that have invested in Xiaomi need to backtrack by November 11, 2021.
With the Biden Administration getting ready to take the reins, the order could be overturned.