Shares of Xiaomi, the Chinese smartphone maker, lost up to 11 percent on Friday in Hong Kong. The rate collapsed after the Trump administration announced that the company was on the “blacklist” of companies linked to the Chinese military.

The blacklisting means that US investors cannot buy shares in a particular company, and must sell their shares within a few months. However, Xiaomi was not on the list of companies that Americans cannot sell without special licenses for electronic components. If it could be on this list, that would be a big hit, because Xiaomi relies on the microprocessors of the American company Qualcomm.

Also read: Huawei sold Honor. It was overtaken by another Chinese company

If component deliveries continue smoothly, the company can at least continue operations. However, this doesn’t help its image, especially when it seeks to gain the benefit of telecom operators and distributors from around the world, says Brian Ma, an IDC analyst.

Xiaomi denies its relationship with the Chinese armed forces. The company provides products and services for both civil and commercial use. It is not owned, controlled or affiliated with the Chinese military, and is not a “Chinese Communist Military Corporation” as defined by the NDAA. Xiaomi said in a statement that the company will take appropriate measures to protect the interests of the company and its shareholders.

It is not permissible to reproduce, publish or publish any part or all of the works mentioned in the journal in any form and by any means (including copying, digitization, copying or copying). , Including publishing online – without the written consent of Gremi Media SA. Any use or use of the works in whole or in part without the consent of Gremi Media SA or the authors in conflict with the law is prohibited by penalty and they may be prosecuted.

This material can only be published in accordance with the provisions “Regulations for the Use of Press Articles” [Poprzednia wersja obowiązująca do 30.01.2017]. The application form can be downloaded from the website www.rp.pl/licencja.