E 'news of a few hours ago that he sees entangled Xiaomi within a somewhat bizarre political game. According to the information that Reuters disclosed yesterday, Lei Jun's company was inserted in a black list due to alleged links and controls of the same company by the Chinese military. These facts all to be demonstrated in practice. The climate between the USA and China is therefore increasingly warming up. But we want to clarify some things here: what does this ban mean for the Chinese giant and what are the differences with the situation of Huawei. In fact, we must know that the two stories are completely different.
Xiaomi and Huawei: two different stories due to a single person. The ban of the two companies is different from all points of view, here are the differences
Il comparison between Xiaomi and Huawei in the US ban it is inevitable, however there are more differences than analogies. First of all we want to reassure all users as what happened to Huawei will not also happen to Lei Jun's company. No danger with regard to devices sold abroad, nor with regard to supplies by Qualcomm. It is good to understand what are the reasons why Trump has decided to impose a ban on the two companies.
- Huawei has been inserted inside a Entity List for national security reasons. The former president in fact signed an executive order last May that grants the federal government the power to prevent the country's carriers from purchase foreign-made telecommunications equipment. The reasons under this decision are clearly of a political nature and, according to the sources, it would be fears related to the presence of spy chips that would allow China to joining companies like Apple and Amazon. However, it should be noted that this ban is not exclusive to Huawei but for all companies that according to the tycoon would be dangerous. That said, the situation with Xiaomi is very different as the Entity List above is under the jurisdiction of the Department of Commerce which is responsible for guaranteeing the supply of services and devices for communication and information
- per quanto riguarda Xiaomi it is the Pentagon that has actually put the company on the black list (not Entity List) for quite different reasons. In fact, according to information in the possession of the Pentagon, the company would be a "Chinese Communist Military Company". Without getting lost in too many technicalities, while for Huawei the speech is strictly related to the marketing of products, for Xiaomi we talk about investments: investing is prohibited in any company considered "Communist Chinese Military Company" or under the control of the army.
However, this does not mean that Xiaomi's situation is better than Huawei's, on the contrary. From the moment it entered this black list the shares went down incredibly. There is talk of a loss between 10 and 15% in securities.
What users risk
A question that many are asking is: what do we risk? At the end of the fair, nothing. Nothing will change in device updates, prices won't go up and access to Google Services or component suppliers (such as Qualcomm and MediaTek) is not at risk. According to the company itself, we are in an embarrassing situation from which, however, the brand comes out with its head held high. It has indeed communicated (already a long time ago) to be in possession of a plan B to be activated in the event of a Huawei 2.0 case. For the moment, however, there are no dangers as the Biden administration, which will come to effective power in five days, will implement a much softer political line than before. The Trump danger remains for now.
