Xiaomi removed from US blacklist following lawsuit

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(Cybertech) – Chinese company Xiaomi was added to the U.S blacklist at the beginning of 2021, just days before Donald Trump’s presidency ended, but it looks like a deal has now been reached between the company and the U.S government.

According to Bloomberg, Xiaomi and the U.S government have reached an agreement to set aside the Trump blacklisting, which would have banned the U.S from investing in the company. Huawei is also on the blacklist, meaning it can’t offer Google services on its smartphones for example.

In January 2021, the U.S Department of Defense designated Xiaomi a “Communist Chinese miltary company”, which meant it was subject to the Trump’s executive order. Under the ban, American investors were said to have to divest their holdings of the blacklisted firms by 11 November 2021.

Xiaomi sued the U.S government following the designation though and Bloomberg reported that a filing to the US courts on 12 May 2021 says the U.S. Defense Department has agreed that a final order vacating the designation “would be appropriate”.

The filing is also said to say: “The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing”. It doesn’t state whether there were any conditions for the removal however.

Bloomberg said both the U.S government and Xiaomi are neogotiating terms and a separate joint proposal will be filed before 20 May 2021 so we suspect we will learn more then. 

Writing by Britta O’Boyle.





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