Huawei is the biggest victim of the US-China trade dispute, which has been knocked out of the fiercely competitive global smartphone market. This time, US President Donald Trump’s target is another big Chinese smartphone brand, Xiaomi Corporation. As part of this, a total of nine Chinese companies, including Xiaomi, were blacklisted in the United States last Thursday for alleged involvement with the Chinese military. News Gizmochaina and Reuters.
Xiaomi is the thirds-largest smartphones maker in the worlds. The company has been achieving remarkable growth since entering the device market. However, Xiaomi is on the verge of losing US investors as he has been blacklisted by the Donald Trump administration. At the same time, no US investment institution will be able to buy new shares of the company. Not only that, US companies with investments in Xiaomi have been instructed to withdraw their funds by November 11.
According to a Reuters report, Xiaomi lost 10 trillion in market value yesterday after the news of its blacklisting in the United States broke. Unfortunately, unlike other Chinese companies, the Donald Trump administration has not provided any evidence to support the allegations against the Chinese company, which has not been blacklisted, including Xiaomi. The American sword on Xiaomi was very unexpected. Because Xiaomi is a smartphone and electronics manufacturer. The Trump administration has previously insisted on banning and blacklisting Chinese companies involved in key industries. That’s why the world’s largest telecom network equipment maker Huawei and semiconductor technology company SMIC was previously banned in the United States and blacklisted. More than 70 Chinese companies, including Xiaomi, have been blacklisted in the United States.
Xiaomi’s rise with the smartphone business. From the beginning, the customer base of its smartphone business was growing rapidly. Significant growth has also been seen in the revenue of the department due to the welfare of the department. Investors were also happy with Xiaomi’s rise. He was coming with the provision of money as needed. For the first time in the third quarter of 2019, the importance of the smartphone business in the company’s revenue was seen to be declining. At that time, Xiaomi was in crisis to maintain the market price. However, it did not take long for the company to overcome the crisis. Xiaomi’s significant rise in India, an important smartphone market, has played a positive role in this. Xiaomi was able to take the top spot in the country by beating Samsung. Blacklisting in the United States is expected to hamper the growth of China’s emerging smartphone brand.
In the third quarter (July-September) of the global smartphone market, China-based Xiaomi rose to the top three, overtaking the iPhone maker Apple. At that time, South Korea-based Samsung and China-based Huawei were in the first and second top positions in the market respectively. However, due to US sanctions and blacklisting, Huawei is predicted to drop out of the top five as a smartphone brand this year.
The outbreak of the global epidemic of David-19 in late 2019 has created intense uncertainty for the smartphone market. The origin of the novel coronavirus is in China, disrupting production by other device makers, including Apple, except Samsung. Although the virus originated in China’s Wuhan Province, it quickly spread to other Chinese states. Contract-based device makers Foxconn and Pegatron were forced to send workers on indefinite leave to deal with the dire situation and the health of workers, which disrupted production activities. Later, the virus spread around the world, disrupting smartphone production in South Korea and Vietnam.
According to analysts, a total of nine companies, including Xiaomi, have been blacklisted. Not clear, but it seems that Xiaomi will not be too complicated with the purchase of US technology and development of its own products like Huawei. That means you don’t have to take separate licenses from the U.S. Department of Commerce to develop your own products using U.S. technology, like Huawei and drone maker DJI. Joe Biden is set to take over as US president on January 20. Sanctions on Chinese companies could lose importance in the new administration.