Xiaomi plunges a record 14% after Trump administration blacklists the Chinese smartphone maker

Xiaomi plunges a record 14% after Trump administration blacklists the Chinese smartphone maker

REUTERS/Edgard Garrido

Xiaomi stock plunged as much as 14% after the Department of Defense added the firm to its US investment blacklist on Thursday.

Under the terms of the executive order signed by President Trump, the designation means that after 60 days US investors won't be able to buy Xiaomi stock and will have a year to sell current holdings.

Still, some investors argue the ban will only be temporary as the Biden administration is likely to overturn President Trump's executive order.

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Xiaomi stock plunged as much as 14% on Friday after the Department of Defense added the firm to its US investment blacklist.

Under the terms of the executive order signed by President Trump back in November, the designation means that after 60 days, US investors won't be able to buy Xiaomi stock.

Current shareholders will have just one year to sell their holdings.

Xiaomi was co-founded by billionaire entrepreneur Lei Jun back in 2010 and went public in the US in mid-2018. Since then, the stock has outperformed, nearly doubling in value before its recent fall.





Beijing-based Xiaomi supplies everything from smartphones, mobile apps, laptops, home appliances, bags, and shoes to