Xiaomi CEO Says Trump Sanctions Led The Chinese Phone Company To Make Electric Cars

Xiaomi CEO says Trump sanctions in 2021 led the Chinese phone company into the lucrative Electric Vehicle market.

Xiaomi challenged the US sanctions in court and won by May 2021, ending U.S. investment restrictions.

By then, Xiaomi CEO said he had launched the development of its first EV that will later be known as SU7.

The Chinese phone company officially unveiled the Xiaomi SU7 (SU stands for Speed Ultra) on March 28, 2024.

To cope with the overwhelming demand, Xiaomi is aiming for a remarkable 100,000 deliveries in its first year of production.

Xiaomi Corporation, best known for its smartphones and home appliances, says a decision by the Trump administration to sanction the Chinese company in early 2021 led it into the lucrative electric vehicle (EV) market.

Lei Jun, Xiaomi group chairman, who disclosed this on Friday July 19th at an annual event in Beijing, described how Xiaomi convened an emergency board meeting to launch its electric car initiative.

“I received a phone call from a friend saying that we had been sanctioned. It was like a bolt from the blue,” Lei said at the event streamed by more than 1.5 million people on WeChat.

“If it weren’t for the huge impact of the unexpected U.S. sanctions, we would not have rashly entered the complex automotive industry.”

Xiaomi challenged the US sanctions in court and won by May 2021, ending U.S. investment restrictions. By that time, Lei said he had launched the development of Xiaomi’s first electric car that will later be known as SU7.

Recall that the Chinese phone company officially unveiled the SU7 (SU stands for Speed Ultra) on March 28, 2024. To cope with the overwhelming demand, Xiaomi is aiming for a remarkable 100,000 deliveries in its first year of production.

At the unveiling of its long-awaited Xiaomi SU7, the Beijing-based Chinese smartphone manufacturer announced it was aiming to “become one of the top five global automakers” within 15 to 20 years.

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