The United States Department of Defense (DoD) removed Chinese Xiaomi Corporation from the blacklist of the government, a court filing revealed, paving the way for any future U.S. investment in the Chinese-based smartphone manufacturer. Furthermore, the filing stated that both parties would agree to resolve their current lawsuit without additional contest, bringing to an end a controversial and short-term clash between Washington and Xiaomi.
The @JoeBiden administration has agreed to remove Chinese smartphone maker #Xiaomi from the blacklist imposed by the earlier #DonaldTrump administration that designated it as a “Communist Chinese military company” and barred the firm from doing business with the #US firms. pic.twitter.com/bMrdToftG2
— IANS Tweets (@ians_india) May 12, 2021
A spokeswoman of Xiaomi said the hardware company is overseeing the recent developments without explaining. Company shares climbed more than six percent in Hong Kong after the news of removal from the blacklist. Furthermore, the Department of Defense officials were not instantly available for remarks after American business hours.
Formerly at the start of 2021, the United States Department of Defense, under the former president Donald Trump government, chose the company as having stalemates to China’s military and placed it on a blacklist that would restrict American investment in the firm. The defense department also placed seven other companies under similar restrictions.
A Federal U.S. Judge Temporarily Blocked Enforcement of the Blacklisting
Xiaomi filed a lawsuit against the American administration and called its placement of putting the company on the blacklist unconstitutional and illegal and denied all claims of having ties with the Chinese military. However, under the Biden government, a federal judge provisionally blocked enforcement of the blacklisting in March, citing the American government’s extremely flawed process for including it in the ban list.
Soon after the successful decision from the court, other Chinese companies placed on the same blacklist also considered filing similar lawsuits. Xiaomi was one of the top Chinese tech companies that Trump targeted for so-called ties to the Chinese military in the last days of his government. Trump made opposing the rise of China a focus of his government’s foreign and economic policy.
Huawei Technologies Co Ltd, the local smartphone rival of Xiaomi, was also put on an export blacklist of U.S. in 2019 and banned from accessing critical technology of American origin, affecting its capability to design its own mobile and computer chips, including source components from outside vendors. The move successfully halted the smartphone division of the company. Later, the defense department placed similar restrictions on Semiconductor Manufacturing International Corporation of China.