The United States government added Xiaomi to its dreaded blacklist for alleged links with the Chinese military. The president of the North American country, Donald Trump, called the company a  Communist Chinese Military Company and, after this, Xiaomi already has a fall in the stock market of more than 10%.

Now, it is important to note that, unlike what happened with Huawei, this blacklist prevents US companies from investing in Xiaomi. If the conflicts escalated, the “punishment” could prohibit US-based companies from working with Xiaomi. However, at least for now, the Chinese tech giant may continue to acquire technology from North American manufacturers.

Is this just the beginning?

The United States Department of Defense revealed that “The Department is determined to highlight and counter the development strategy of the Civil-Military Merger of the People’s Republic of China (PRC), which supports the modernization objectives of the People’s Liberation Army ( EPL) ensuring their access to advanced technologies and the experience acquired and developed even by companies, universities and research programs of the PRC that appear to be civil entities. Xiaomi has been

For its part, Xiaomi stated that The Company reiterates that it provides products and services for civil and commercial use. Xiaomi confirms that it is not owned, controlled, or affiliated with the Chinese military, and it is not a “Chinese Communist Military Company” defined in the NDAA

As Abishur Prakash indicated to CNBC, for Xiaomi now everything is at stake since by belonging to the blacklist, the company is considered a threat to the national security of the United States. This can affect your global strategy, such as expanding into different markets or launching new products. We will see if it scales to more in the coming weeks