Pentagon Adds Xiaomi to U.S. Investment Blacklist
January 14 2021 - 08:26PM
Dow Jones News
By Quentin Webb
Xiaomi Corp. and eight other businesses have been added to a
list of companies that the U.S. Department of Defense says aid
China's military and security services, meaning U.S. investors will
soon be barred from buying shares in the Chinese
smartphone-maker.
Xiaomi's inclusion on the Pentagon's list of "Communist Chinese
military companies" means that it will be covered by an executive
order issued in November by President Trump that blocks new U.S.
investment in blacklisted companies or in funds that hold them.
Earlier this week, The Wall Street Journal reported that the
U.S. government was expected to let Americans continue to invest in
Chinese technology giants Alibaba Group Holding Ltd. and Tencent
Holdings Ltd., after weighing their potential addition to the
blacklist, but was set to add nine other companies.
Xiaomi's American depositary receipts, which trade in the
over-the-counter markets, fell 7.5% on Thursday. The company's Hong
Kong-listed shares have surged 167% in a year, giving Xiaomi a
market capitalization of about $107 billion, according to
FactSet.
The investment ban already covered 35 groups, and the Treasury
Department has said it will add company subsidiaries to the list.
As well as Xiaomi, Thursday's additions included Shanghai-listed
Advanced Micro-Fabrication Equipment Inc.
Write to Quentin Webb at quentin.webb@wsj.com
(END) Dow Jones Newswires
January 14, 2021 20:11 ET (01:11 GMT)
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