Pentagon added phone maker Xiaomi and eight other Chinese firms to the list of companies with ties to the Communist China's military. On Thursday evening, the US also imposed sanctions on dozens of Chinese officials and their families for Beijing’s recent actions regarding the South China Sea.



US Department of Defence in a statement informed public opinion about the Chinese phone-maker close ties with the war machine of Chinese Communist Party.

The Beijing based the world’s third-largest smartphone maker within the third quarter of 2020.

The goal of the restriction is to deny China's ability to strengthen its military that it could project its power globally or even further in the region, as First Secretary of Chinese Communist Party Xi Jinping intended.

"The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities," the author of Pentagon's statement stressed.

Xiaomi is one of nine entities designated as “Communist Chinese language army corporations.”  Comac, a Chinese language plane producer, can be on the record. Six other firms, including the semi-conductors producers, were also on the list.

Those companies will be subject to a new U.S. investment ban which forces American investors to divest holdings of the blacklisted firms by Nov. 11, 2021.

Shares in Xiaomi slumped over 8% in early Friday trading, against a 0.2% drop in the Hang Seng index.



The Communist authors of the coercive policies against the countries in the region of South China Sea sanctioned

The United States also has barred some officials in the Chinese ruling party, military, and state-owned companies over Beijing’s recent actions regarding the South China Sea, Secretary of State Mike Pompeo announced.

The sanctions include visa restrictions on some Chinese individuals, specifically executives from state-owned companies, as well as officials in the Chinese Communist Party and the Chinese Navy.

Pompeo said these sanctions target the ones ''responsible for, or complicit in, either the large-scale reclamation, construction, or militarization of disputed outposts in the South China Sea, or (China’s) use of coercion against Southeast Asian claimants to inhibit their access to offshore resources in the South China Sea.''

The secretary noted that these restrictions may also apply to immediate family members.