China’s Xiaomi pushes global smartphone expansion as it monitors US trade ban on Huawei

Xiaomi Corp, the world’s fourth largest smartphone supplier, said it was closely monitoring the recent move by Google to curtail some business with Chinese rival Huawei Technologies as the company accelerates its international expansion plans.

“We are paying a lot of attention to this issue, but it has no direct impact on us,” said Chew Shou Zi, chief financial officer at Xiaomi, in a conference call with analysts after the close of trading in Hong Kong on Monday.

Chew said the Beijing-based company, which shipped 27.9 million smartphones in the first quarter, aims “to serve 70 per cent of the world’s population” as part of its expansion strategy. He did not provide a timeline on when that goal would be achieved.

Google’s action came in the wake of a decision last week by the US Commerce Department’s Bureau of Industry and Security to place Huawei and 70 of its affiliates on an export blacklist, which restricts the Chinese firm from buying hardware, software and services from American hi-tech suppliers.

That followed US President Donald Trump’s signing of an executive order that barred the use of telecommunications equipment made by companies that are deemed a threat to national security. Huawei, the world’s largest telecoms network gear supplier, has repeatedly denied US accusations that its products can be used for spying by Beijing.

Xiaomi on Monday reported a net profit of 3.2 billion yuan (US$462 million) in the quarter ended March, rebounding from a 7 billion yuan loss in the same period last year, on the back of steady handset shipment growth overseas as well as increased sales at its internet of things (IoT) and lifestyle business, which offers products that range from smart television sets and home appliances to photo printers and smart door locks.