Why Xiaomi phones aren't banned, but are rarely sold in the US

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Americans looking at a list of the most popular smartphone brands across the globe may be confronted with a stark realization: we are systematically cut off from some of the most exciting mobile tech on the market. Most consumers are stuck choosing between smartphones from a handful of brands —primarily Apple, Samsung, Google and Motorola. But take a trip abroad, and you'll find a cornucopia of brands. Foreign markets enjoy access to devices from companies including Oppo, RealMe, Honor, Huawei and, of course, Xiaomi.

Despite being unavailable stateside, Xiaomi is the third most popular mobile vendor in the world at the time of this writing, holding just under 10% of the global market. Many Yanks may assume that they've never been able to put their mitts on the latest flagships from Xiaomi, such as the Xiaomi 17 Ultra, because the phones are Chinese in origin and therefore banned in the United States. But that's not the case.

While the technological rivalry between the US and China has been tumultuous in recent years, with everything from smartphones to Wi-Fi routers ending up on some kind of blacklist or banned list, Xiaomi products were only briefly the subject of one such dragnet a few years ago. The real reason its phones are so infrequently sold here is much more straightforward: The company hasn't made inroads into the US market on its own merits. Our commercial operating environment is not compatible with Xiaomi's own business principles, and, meanwhile, its offerings in China and elsewhere are getting better than ever.

If you recall Xiaomi phones being banned in the United States, your memory isn't entirely faulty. In early 2021, as once and future president Donald Trump prepared to begrudgingly leave office, his administration engaged in a series of harsh crackdowns on Chinese technology. The most famous and enduring of these bans fell on Huawei, which had been gaining plenty of steam in the US market and was quickly becoming a viable competitor to Apple and Samsung. But as reported by Reuters on January 14, 2021, Xiaomi was added to a blacklist of companies purported to have ties with the Chinese military. American investors were prohibited from trading in the company and required to divest any holdings.

That ban was short-lived. Two weeks later, Xiaomi filed a lawsuit contesting the ban. On May 25, just over four months after being blacklisted, the US government agreed to lift its Xiaomi ban. But even though the debacle lasted only a third of a year, and despite the fact that nothing technically prevents Xiaomi gadgets from being sold in the United States, you're almost certainly not using one if you're a longtime US resident.

One reason Xiaomi doesn't participate much in the US market is obvious. Entering the US would dangle a sword of Damocles over Xiaomi's head. After having already been subject to one US government ban, and with Chinese tech increasingly a boogieman for US lawmakers, the company can't ever be sure it won't spend a whole lot of money against the existing Apple-Samsung duopoly, only to get crushed by yet another blacklisting. But there are much more salient reasons why the only way to get a Xiaomi phone in the States is to import it.

As a major player in the global smartphone market, Xiaomi is a brand you'd expect to see in stores alongside the Apple iPhone and Samsung Galaxy lines with which Americans are most intimately acquainted. But there are several reasons why, despite no longer being banned by the US government, Xiaomi prefers not to entangle itself in the US market.

First, there's brand strategy. Although its flagship hardware has reached truly impressive heights, with powerful processors and some of the most capable camera systems you can put in your pocket, the company achieved its success by breaking into developing markets. The more mature US market is more expensive to enter. As noted by Android Central, Xiaomi has long prided itself on selling its phones with margins as slim as just 5 percent, keeping hardware impressive and prices competitive. With the US dominated by carriers whose partnership is necessary to make any real headway, it's more trouble than seems worth it for Xiaomi's leadership.

You can still buy a Xiaomi product in the US, but unless you're willing to pay import costs, it won't be a phone. Instead, you can pick up the company's air purifiers, chargers and desk accessories, or the sleekest-looking cordless screwdrivers you've ever laid eyes on.

Meanwhile, Xiaomi's most exciting products are being developed on its home turf. It's a part of China's surging electric car market, and has already released several high-tech vehicles. Xiaomi's SU7 sedan claims to be competitive with a Porsche, and the 2026 model can be had for just under $32,000 USD. Unfortunately, Xiaomi vehicles lack certifications for US roadways; for the Xiaomi car and phone combo, you'll need to expatriate.