US removes Xiaomi from blacklist, reversing late China Jab by Trump

A court filing showed that the US Department of Defence will remove China’s Xiaomi Corp (1810.HK) from a government blacklist. This is as per the marking a noteworthy reversal by the Biden administration of one of Donald Trump’s last jabs at Beijing before exiting office.

Without further contest, the two parties would agree to resolve their ongoing litigation as per the filing stated. This brings an end to the brief and controversial spat between the hardware company and Washington that had further soured Sino-U.S. ties. The company is watching the latest developments closely, said a Xiaomi spokesperson.

As the decision news spread the shares in the company rocketed over 6% in Hong Kong. In the waning days of the Trump administration, as it was placed on the blacklist in January, the company’s share price has tumbled roughly 20%. After US business hours, Department of Defence officials weren’t immediately available for comment.

The department had designated the firm as having ties to China’s military and placed it on a list that would restrict U.S. investment in the company. Under similar restrictions seven other Chinese companies were also placed. A lawsuit has been filed against the U.S. government by the Xiaomi. This is by calling its placement unlawful and unconstitutional and denying any ties to China’s military. Citing the U.S. government’s as deeply flawed process for including it in the ban, a federal judge temporarily blocked enforcement of the blacklisting.

Soon after that victory, similar lawsuits were considered by other Chinese firms placed on the same blacklist. Xiaomi was among the more high-profile Chinese technology companies. Former President Donald Trump targeted this company for alleged ties to China’s military.

Xiaomi’s local smartphone rival Huawei Technologies Co Ltd (HWT.UL) was also put on an export blacklist in 2019. It was also barred from accessing critical technology of U.S. origin, affecting its ability to design its own chips and source components from outside vendors. The company’s smartphone division were severely crippled by this measure.

Calling Xiaomi, a Chinese military company was always ridiculous. For firms tied to more legitimate defence concerns, or Xinjiang, however, it will be more difficult said Prof. Doug Fuller.