Xiaomi has responded to the entity ban that was issued by the United States government against it earlier today.
“The Company noted that the Department of Defense of the Untied States released a news release on January 12 2021 (US time) adding the Company to the list of qualifying entities prepared in response to section 1237 of the National Defense Authorization Act for fiscal year 1999 (the “NDAA),” the company said.
In the notice, Xiaomi defends itself against the ban claiming that they have been in compliance. “The Company has been in compliance with the law and operating in compliance with the relevant laws and regulations of jurisdiction where it conducts is business. The Company reiterates that it provides products and services for civilian and commercial use,” Xiaomi said in the communique.
Xiaomi went further to say that they are not owned by the Chinese government. “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,” they said.
The company has said that it will take “appropriate cause of actions” to protect the interest of the Company and its stakeholders due to this development.
The addition of Xiaomi to the entity list is a big deal as history suggests. Huawei was added to this list in 2019 and this affected their smartphone, computer and networking business. Huawei’s ban led it to focus on their own ecosystem which is quite difficult to pull off. Xiaomi is known for their smartphones, laptops and its wide array of accessories which will be affected by the ban.