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As XDA Developers points out, the US s National Defense Authorization Act (NDAA) classifies Communist Chinese military companies as any person identified in the Defense Intelligence Agency publication numbered VP-1920-271-90, dated September 1990, or PC-1921-57-95, dated October 1995, and any update of those publications for the purposes of this section along with any other person that–(i) is owned or controlled by the People’s Liberation Army; and (ii) is engaged in providing commercial services, manufacturing, producing, or exporting .
The US hasn t elaborated any further on how Xiaomi - a company which specialises in consumer electronics - fits into this, or what evidence they have to back this up.