Xiaomi Corporation, widely known for its smartphones and home appliances, made a surprising move into the electric vehicle (EV) market this year. This strategic pivot was largely triggered by sanctions imposed on the company by the Trump administration in early 2021. During an annual event in Beijing, Xiaomi CEO Lei Jun revealed that these sanctions were the catalyst for the company’s decision to diversify into the automotive industry.
The Sanctions and the Immediate Response
In the final days of the Trump administration, Xiaomi was placed on a U.S. sanction list, a decision that shocked the company. Lei recounted receiving a phone call from a friend about the sanctions, describing the news as “a bolt from the blue.” This unexpected development led to an emergency board meeting where the company quickly decided to embark on the complex journey of developing an electric car.