WASHINGTON:  Chinese multinational electronics company Xiaomi along with eight other Chinese firms has been put on an investment blacklist by the U.S. Department of Defense.

This move prevents American investors from investing in these companies. As per Mashable, the U.S. government alleges that the nine banned Chinese companies have ties to or are controlled by the Chinese military.

In addition to Xiaomi, the list also includes Comac, a plane maker that planned on setting up a factory in the U.S. to compete against Boeing and Airbus. Since the time of this move, Xiaomi’s shares have plunged by 11% on Friday morning. Xiaomi is China’s second-largest and the world’s third-biggest smartphone maker.

As per Mashable, Qualcomm Ventures, the venture capital arm of Qualcomm, has invested in Xiaomi. If the decision is not overturned, the San Diego-based chipmaker might have to divest its holdings in Xiaomi by November.

All the existing American investors will also have to divest their holdings in the blacklisted firms by November 11, 2021. Huawei is already a part of this blacklist. (ANI)