FTSE Russell, the world’s second-largest indexing company, said on March 5 that it will remove Xiaomi from the FTSE Global All Cap Index and the FTSE Global A-share Index Series, and Wicker Basket Technologies from the FTSE Global All Markets Index and the Microcap Index, effective March 12, under an earlier executive order signed by former U.S. President Donald Trump.
The Trump Administration issued an executive order on Nov. 12 last year prohibiting anyone in the U.S. from investing in Chinese companies that Washington believes are owned or controlled by the Chinese military. The order will take effect on Jan. 11 of this year. The Trump administration increased sanctions and restrictions on Chinese companies on Jan. 14 near the end of the term, including sanctions on Chinese state-owned oil companies, and also issued investment bans on nine other Chinese companies, including Xiaomi. The U.S. added nine companies to the list of those the Defense Department determined to have ties to the Chinese military, in the order of Xiaomi Group, China Microelectronics Semiconductor Equipment Corporation, Wicker Basket Technology Corporation, Beijing Zhongguancun Development and Investment Center, Guangdong Gao Yun Semiconductor Technology Corporation, Da Xinhua Airlines, CML Technology Corporation, China Aviation Group and Commercial Aircraft Corporation of China.
In response, FTSE Russell said in a statement, citing the executive order, that the changes took effect from March 12. The exclusions are subject to further guidance from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), FTSE Russell added. The company said the proposed inclusion of advanced microfabrication equipment in the global and China indices would “not proceed as previously announced. Xiaomi did not immediately respond to a request for comment. At the Time of its “blacklisting” by Washington, Xiaomi denied any ties to the Chinese military. Xiaomi subsequently filed a lawsuit against the U.S. government over the issue.
Recent Comments