Tagged: sanctions

Xiaomi is suing the US government

The US Department of Defense announced on February 14 that it had added nine Chinese companies to its sanctions list with links to the Chinese military, including aircraft maker Comac of China and mobile phone maker Xiaomi.

China’s smartphone shipments in 2020 will drop 11 percent year-on-year to 330 million units, according to a global smartphone market research report for the fourth quarter of 2020 released by global technology market analysis and market consulting firm Canalys1 on Thursday.Xiaomi shipped 39.8 million units in the Chinese mainland smartphone market in 2020, with a year-on-year growth of 3% and a market share of 12%, ranking the fourth place and becoming the only company with a positive growth in shipments in the Chinese market with Apple.

Companies, sanctions, the economy, exports

Chinese smartphone maker Xiaomi has filed a legal complaint against the US Department of Defense and Treasury on January 29, according to publicly available court records, huanqiu.com reported on Monday citing foreign media sources.

Xiaomi has asked a US court to declare the US government’s decision to place it on an investment “blacklist” illegal, naming defence secretary Lloyds Austin and Treasury secretary JanetYellen as defendants, foreign media reported.

‘If the restrictions go into effect, Xiaomi faces imminent, serious and irreparable harm,’ the company said in a filing with the U.S. District Court in Columbia.

On January 14, the U.S. defense department announced that it will 9 companies listed in the so-called “of the communist party of China got the enterprise” list, the nine companies including comac, millet group, the micro semiconductor (AMEC), laundry list (LKCO), Beijing zhongguancun development investment center, high clouds semiconductor (GowinSemiconductor), grand China aviation (GrandChinaAir), in the target language (GTCOM) and cnac (CNAH).

If the ban goes into effect, US investors will not be able to invest in or buy shares in the companies and will have until November 11 to sell their shares in the blacklisted companies.

In addition, the potential risks of being included in the list include further investigation or subsequent restrictions imposed by the United States, enhanced export control and economic sanctions, and possible obstruction of other US-related businesses.

Mobile phone shipments growth against the trend

The US crackdown on Xiaomi and other companies has also attracted the attention of the Chinese government. Chinese Foreign Ministry spokesman Zhao Lijian responded at the time that the Trump administration has “distorted the concept of national security, abused state power and repeatedly cracked down on Chinese companies for no reason, which China firmly opposes.”

Companies, sanctions, the economy, exports

Inverse historical trend, “the us relevant ACTS contrary to the principle of consistent brand of market competition and international economic and trade rules, interfere with the normal economic, trade and investment cooperation between China and the United States, against foreign companies in the United States investment confidence, will also hurt U.S. businesses and the interests of investors, this is some people in the United States another example of the dog in the manger.”Zhao Lijian said.

Stock price firm mobile phone shipments growth against the trend

Xiaomi’s Hong Kong share price fell 10 per cent the day after the sanctions were imposed, though the company’s shares quickly rebounded.Xiaomi’s Hong Kong shares closed at HK $29.20 on Jan. 29.

The good results have supported Xiaomi’s share price.According to a research report released by market research firm Canalys, in 2020, the smartphone market shipments in the Chinese mainland fell 11 percent year-on-year to 330 million units.

In terms of branch companies, the top five manufacturers in the Chinese mainland smartphone market in terms of shipment volume in 2020 are: Huawei, OPPO, Vivo, Xiaomi and Apple.Xiaomi and Apple are the only companies with positive shipments growth in two years.

Among them, Huawei (including Honor) shipped more than 123 million units in the Chinese mainland smartphone market in 2020, down 13% year on year, and ranked first with a market share of 37%.Xiaomi shipped 39.8 million units in the Chinese mainland smartphone market in 2020, up 3% year on year, ranking fourth with a market share of 12%.Apple ranked fifth in the Chinese mainland’s smartphone market in 2020, with shipments of 34.4 million units, up 14% year on year and a market share of 10%.