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2019 Xiaomi Founder's Award forms the basis of the recent US blacklist - WSJ report

Chinese smartphone brand Xiaomi showed growing interest and growth until January 2021 as it continued to try to fill the void created by the US government's shutdown of Huawei out of fears that it had strong ties to the Chinese military and might conduct espionage activities on their behalf. The brand has grown rapidly after being blacklisted by Huawei to become the third largest smartphone manufacturer in the world. Xiaomi Logo Co-founder Lei Jun

However, he was shocked when the outgoing government of President Donald Trump banned the company, along with seven other Chinese companies, on charges that it is owned by the Chinese military or has very strong ties to the Chinese communists. government.

Photos Wall Street Journal has now revealed that the reason for the blacklisting of Xiaomi was that its founder Lei Jun was honored with the 2019 communist government's award, entitled "Outstanding Socialism Builder with the Chinese." Characteristics. The award was well received by the company as it is well covered in the biography of its founder and in the related annual report of the company.

In response to the US government's blacklist, Xiaomi issued a public statement confirming that it has no ties to the Chinese government and that the company is not owned by the Chinese military establishment. Xiaomi stressed that the company continued to abide by all legal protocols in its business operations, and the US government did not find that they were in breach of them. He insisted that he would use all legal avenues to recover damages for unfair categorization and blacklisting by the US government. The company's shares fell significantly after the January decision, shedding a quarter of its shares (25%) this week to close at $ 15,34 a share.

Xiaomi has also filed a lawsuit challenging the blacklisting in the US, and a lengthy legal battle has already begun, which has brought the case to court. However, it remains to be seen how much evidence the US Department of Defense is willing to release in support of the blacklist decision remains to be seen.


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