The US government has blacklisted Chinese smartphone maker Xiaomi for alleged ties to the Chinese military. Huawei was already added to this list earlier.

The move is the latest move by outgoing President Donald Trump's administration in its China policy, which is likely to increase tensions between the two superpowers. US investors are forced by the ban to relinquish their interests in Xiaomi, and eight other Chinese companies that have been blacklisted.

Xiaomi said in a statement that the company "is not owned, controlled or associated with the Chinese military". The Chinese company says it will take "appropriate" action against the sanctions, but how is unclear.

Trump has characterized his presidency, which ends Wednesday, with a strong anti-China policy. Not much is clear about how future President Joe Biden will deal with China. His transfer team did not respond to a request for comment to Reuters news agency.

US government blacklists Chinese smartphone maker Xiaomi