China’s Xiaomi says American ties to smooth U.S. push amid trade tension

BEIJING- China’s Xiaomi Corp, planning to enter the United States till next year, added with replying their U.S. connections would help the consumer-focused smartphone maker to skirt the political resistance, met by some of its compatriot rivals. The U.S. action comes against a backdrop of increasing trade tension with China as the government of U.S. President Donald Trump champions tariffs on Chinese imports.

Senior Vice President Wang Xiang also told about the U.S. market that it was “very attractive” and that the firm was adding engineering resources to develop versions of its handsets that are compatible with U.S. cell phone networks. “Next year we hope we can do something there,” Wang said, adding talks with U.S. carriers are yet to produce concrete agreements.

On Monday, state-backed China Mobile Ltd became the latest Chinese telecommunications firm targeted by U.S. politicians seeking to block market entry on security grounds. The U.S. smartphone business of ZTE Corp has all but shut down since the firm was barred from buying U.S. components earlier this year as punishment for violating trade sanctions.

Xiaomi’s Wang said, “the tension introduced ‘uncertainty’ but downplayed its impact on the firm’s U.S. expansion plans, highlighting relationships with suppliers such as U.S. chipmaker”.

by Sawan Kumar on July 4, 2018

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