Court Filings Show Defense Department Removes Xiaomi From Blacklist

The U.S Department of Defense has agreed to remove the Chinese smartphone company Xiaomi Corp’s XIACF blacklisting, bringing an end to their ongoing tussle, Reuters reports.
The Court filing stated that both parties would resolve litigation without a further contest.
The parties were negotiating over specific terms and will file a separate joint proposal before May 20, Bloomberg reports.
The former Donald Trump administration had banned Xiaomi earlier this year over alleged military ties along with seven other Chinese companies, including a restriction on U.S. investments in the company.
Trump’s November order prohibited American investment in Chinese firms owned or controlled by the military.
Xiaomi retaliated with a lawsuit denying its Chinese military connections and won the court ruling over the investment restrictions.
The blacklisting enforcement was temporarily blocked in March by a federal judge under the President Joe Biden administration, considering the ban as “deeply flawed.”
Reuters notes that other Chinese firms were also contemplating similar lawsuits after Xiaomi’s victory.
Trump’s order also targeted TikTok owner ByteDance Ltd and WeChat owner Tencent Holdings Ltd TCEHY. Huawei Technologies Co was prohibited from buying American-made components and banned from global infrastructure projects.
Interestingly, Biden also extended a 2019 executive order this week, excluding the U.S. companies from using telecommunications equipment manufactured by firms like Huawei over national security risk concerns.
Congress also remains focused on bipartisan legislation to oppose China and bolster the U.S. position in technology and critical manufacturing.
Price action: XIACF shares closed lower by 1.9% at $3.1 on Tuesday.

XIACFXiaomi Corp

$3.10-29.9%

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TCEHYTencent Holdings Ltd

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