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Xiaomi shares fall 10% as U.S. adds smartphone-maker to ‘blacklist’

16 points by seesawtron 6y ago

DiogenesKynikos 6y ago
The "military ties" excuse for blacklisting Chinese companies is getting more and more absurd. It's clear that the Trump administration's goal is simply to cripple every major Chinese tech company. So far, China hasn't really responded, but it's hard to believe they'll just sit back forever. My guess is that the Chinese government is waiting to see what Biden's approach will be, and that they'll retaliate if Biden does not roll back some of Trump's measures.
- Barrin92 6y ago
  there's a reason China came up with its Made in China 2025 industrial policy move five years ago. This is already priced in and China's response is to heavily bolster its domestic industry rather than retaliating because in reality there's fairly little to retaliate with, and to instead increase trade relations with Europe and the rest of Asia. There's also the calculus that the US measures may be mid- and long-term beneficial to China, because arbitrary measures undermine America's claim to be the maintainer of global rule-based free-trade. Individual Japanese firms actually have already started to market themselves as an alternative to the US as mentioned in this story.[1] But the U.S. actions so far may be indirectly driving away some business. Jake Parker, senior vice president of the U.S.-China Business Council, which represents American companies doing business in China, says he has been told of one Japanese company urging Chinese companies to switch from their U.S. suppliers. The message, he says, is: “You can’t rely on U.S. technology because you might be cut off from it in the future.” [1]https://www.wsj.com/articles/the-u-s-vs-china-the-high-cost-of-the-technology-cold-war-11603397438 https://www.wsj.com/articles/the-u-s-vs-china-the-high-cost-...
- deleted 6y ago
  [deleted]
- blackrock 6y ago
  The funny thing is that Xiaomi was mocking Huawei this entire time. It’s like they were completely clueless, and it didn’t even occur to them that Trump, or any other American president, would turn his wrath on them too.
- dirtyid 6y ago
  China responded last week with an EU style blocking statue: "Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures". Essentially retaliate against any entities from third countries who obey US sanctions. It's still more signal than prelude to forcing companies to choose, but looks like forcing companies to choose is the next step.
- jedimind 6y ago
  A quick look at your comment history is sufficient and it's clear that the only ones who use "excuses" are china shills like you, who try to defend a terribly corrupt communist regime, that commits the largest scale of genocide since the holocaust, by hook or by crook. Don't insult people's intellect with your victim complex, china deserves every bit of opposition it receives and more.

16 points by seesawtron 6y ago

The "military ties" excuse for blacklisting Chinese companies is getting more and more absurd. It's clear that the Trump administration's goal is simply to cripple every major Chinese tech company. So far, China hasn't really responded, but it's hard to believe they'll just sit back forever. My guess is that the Chinese government is waiting to see what Biden's approach will be, and that they'll retaliate if Biden does not roll back some of Trump's measures.

Barrin92 6y ago
there's a reason China came up with its Made in China 2025 industrial policy move five years ago. This is already priced in and China's response is to heavily bolster its domestic industry rather than retaliating because in reality there's fairly little to retaliate with, and to instead increase trade relations with Europe and the rest of Asia. There's also the calculus that the US measures may be mid- and long-term beneficial to China, because arbitrary measures undermine America's claim to be the maintainer of global rule-based free-trade. Individual Japanese firms actually have already started to market themselves as an alternative to the US as mentioned in this story.[1] But the U.S. actions so far may be indirectly driving away some business. Jake Parker, senior vice president of the U.S.-China Business Council, which represents American companies doing business in China, says he has been told of one Japanese company urging Chinese companies to switch from their U.S. suppliers. The message, he says, is: “You can’t rely on U.S. technology because you might be cut off from it in the future.” [1]https://www.wsj.com/articles/the-u-s-vs-china-the-high-cost-of-the-technology-cold-war-11603397438 https://www.wsj.com/articles/the-u-s-vs-china-the-high-cost-...
deleted 6y ago
[deleted]
blackrock 6y ago
The funny thing is that Xiaomi was mocking Huawei this entire time. It’s like they were completely clueless, and it didn’t even occur to them that Trump, or any other American president, would turn his wrath on them too.
dirtyid 6y ago
China responded last week with an EU style blocking statue: "Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures". Essentially retaliate against any entities from third countries who obey US sanctions. It's still more signal than prelude to forcing companies to choose, but looks like forcing companies to choose is the next step.
jedimind 6y ago
A quick look at your comment history is sufficient and it's clear that the only ones who use "excuses" are china shills like you, who try to defend a terribly corrupt communist regime, that commits the largest scale of genocide since the holocaust, by hook or by crook. Don't insult people's intellect with your victim complex, china deserves every bit of opposition it receives and more.