In a major blow to China, the United States (US) has blacklisted smartphone and electronics behemoth Xiaomi Corporation and 10 other companies, reports Livemint.

China's second-largest smartphone maker, Xiaomi Corporation, which also manufactures scores of other products like electric scooters and earphones et cetera saw its shares plunging 11 per cent following the blacklisting.

The Trump Administration has targeted 11 companies with alleged ties to the Chinese military establishment. These companies include China's largest chipmaker Semiconductor Manufacturing International Corporation (SMIC), and China's third-largest oil company China National Offshore Oil Corporation.

Other companies which have been blacklisted include Luokong Technology Corporation, Gowin Semiconductor Corporation and Global Tone Communication Technology Company, and Advanced Micro-Fabrication Equipment Inc among others.

The US Defence Department in a statement issued on Thursday (14 January) said that it was determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities.

Meanwhile, the US Commerce Department added China National Offshore Oil Corporation to the Entity List and Chinese-firm Skyrizon to the Military End-User List.