Reading Time: < 1 minute
The US Defense Department will remove Xiaomi from the government blacklist. According to the court filing, Xiaomi and the US government will continue to resolve the ongoing litigation and bring an end to the brief and controversial spat between the two which soured relations between the countries.
The developments are being closely monitored by the company, while the news brought a 6% rise in the company share prices in Hong Kong. The share prices had sunk by nearly 20% ever since it was blacklisted in January while the Trump administration was preparing to leave office.
Earlier the Defence Department had alleged the company of having ties with the Chinese military, which led to restricting the company from investing in the US market. The Defense Department refrained from commenting about it.
Xiaomi filed a lawsuit against the US government, calling its placement “unlawful and unconstitutional” and denying any ties to China’s military. There are 7 other Chinese companies that were also blacklisted. After the court decision, the Biden administration has decided not to challenge the ruling. While the other Chinese companies are planning similar lawsuits.
Another company on the US radar was Huawei Technologies Co Ltd. it was also blacklisted in 2019 and banned from accessing critical technology of U.S. origin. This affected its ability to design its own chips and source components from outside vendors.