After the Trump administration included Xiaomi in the dreaded list of companies that have trade restrictions, the company’s CEO, Lei Jun, ended up being hurt. That’s because the Chinese manufacturer’s co-founder lost more than $ 3 billion of his personal assets in a single afternoon,
The main reason was the record 10% drop in the company’s shares. Thus, Lei Jun, who owns more than 25% of Xiaomi, had his fortune reduced from $ 33.2 billion to something around $ 28.2 billion.
However, anyone who thinks that Jun was the only one who lost out is wrong. Lin Bin, vice president of Xiaomi, also saw $ 1.5 billion “disappear” from his fortune.
In general, five billionaire executives ended up losing money with the stock fall. The Trump administration’s decision also ignited the warning signal among top executives in China’s technology market.
That’s because trade sanctions against Huawei and other manufacturers have always focused on hurting strategic companies for Beijing. However, by including Xiaomi, the U.S. government ended up revealing that any Chinese company can become a target.
In its defense, Xiaomi denies having any connection with China’s armed forces. In addition, the manufacturer reinforced in an open letter that its products are designed for civil and peaceful use only. For now, it is not yet possible to know whether President Biden will proceed with the trade war started by Trump.