The US Department of Defense, on Jan 15, declared Xiaomi a “Communist Chinese military company” under the Trump administration, which should result in “near-term pressure” on the stock, says the team OCBC Investment Research on Jan 18.

While that is unlikely to translate into any material operational impact, OCBC says the larger downside risk could come in the form of the US’s Department of Commerce’s Entity List, though that “is not the case for now”.

Separately, Honor, a smartphone brand owned by Shenzhen Zhixin New Information Technology, has re-entered the market following its sale from Huawei in November 2020.

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