US investors will be prohibited from buying Xiaomi shares and will have to divest their holdings by November, according to the executive order.
Overseas sales topped 40% of revenue for the company in the second quarter.
Huawei is losing its status as a smartphone powerhouse in 2021, with a smartphone shipment forecast putting it in seventh place among global vendors.
Huawei, Xiaomi, Oppo, and Vivo are reportedly collaborating on an app platform for overseas markets, potentially competing with Google’s Play store.
Xiaomi seeks to gain ground in the battle for consumer living rooms with its artificial intelligence of things (AIoT) initiative.
The Xiaomi M9 will feature Qualcomm’s latest processor Snapdragon 855 and comes with three cameras in the back.
Competition is picking up as the smartphone market slows and companies launch new sub-brands.
Chinese consumers rallied to support one of their country’s tech behemoths.
The gadget’s popularity in Chinese households have propelled domestic tech companies to top global rankings.
China has been a problem for the US giant as domestic players have eaten into the iPhone’s market share.