US investors will be prohibited from buying Xiaomi shares and will have to divest their holdings by November, according to the executive order.
Huawei is losing its status as a smartphone powerhouse in 2021, with a smartphone shipment forecast putting it in seventh place among global vendors.
Overseas sales topped 40% of revenue for the company in the second quarter.
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.
Chinese consumers rallied to support one of their country’s tech behemoths.
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.