Xiaomi is one of the most amazing brand around the globe. The company has been manufacturing great devices around the globe. But a recent news came that in United States the government has Blacklisted the brand. Being one of the most popular brand the government has banned it due to some privacy concerns. Not only this another news came forward that besides Xiaomi government has also Blacklisted 8 other other Chinese company. However, the companies and various people are shock due to this sudden move by the government. If we look over the data which shows that Xiaomi is the third leading gadgets company behind Samsung and Apple. This sudden move by the government has surely have a sudden shock to the people. But there is some strong reason behind this blacklisting. Let’s understand the reason in detail.
Reason for Blacklisting
The United States of America has Blacklisted the Xiaomi and 8 more Chinese company due to the department of defense in the US. This is done for alleged military links. Other than Xiaomi Chinese Government owned and controlled airlines manufacturer Commerical Aircraft of China have also been Blacklisted by the US Government. But there some conflicts that how a smartphone manufacturing and electronic applications maker firm can be a problem to the military links with Chinese Government. But this is the exact reason which was given by the US government. Recently the government has also banned 60 such Chinese companies due to the same reason as the tensions arise between China and United States. One such company was China National Offshore Oil Corp. The Government of US believe that there might be a problem for the intellectual security for the country. This could also be a threat to US national security of international community.
Effects of Blacklisting
For those who don’t know about Blacklisting of companies in US it means that the American’s will not be allowed to invest in such companies which are Blacklisted. The investors will be mandated to sell their investments in these firms. Also there will be no tranfer of technology will take place. This will lead to the people’s safety as well as the protection of intellectual rights of the country.