ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
China tech

US removes Xiaomi from blacklist, says will resolve litigation

Shares spike as investors cheer news that American investments now allowed

Earlier this year the U.S. Department of Defense, under the Trump administration, designated Xiaomi as having ties to China's military and placed it on a list that would restrict U.S. investment in the company.   © AP

The U.S Department of Defense will remove China's Xiaomi Corp. from a government blacklist, a court filing showed, clearing the way for any future American investment in the Beijing-based smartphone maker.

The filing stated that the two parties would agree to resolve their ongoing litigation without further contest, bringing to an end a brief and controversial spat between the hardware company and Washington.

A Xiaomi spokeswoman said the company is watching the latest developments closely, without elaborating. Shares in the company rocketed over 6% in Hong Kong as news of the decision spread.

Department of Defense officials weren't immediately available for comment after U.S. business hours.

Earlier this year the U.S. Department of Defense, under the Trump administration, 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.

Seven other Chinese companies were also placed under similar restrictions.

Xiaomi went on the offensive by filing a lawsuit against the U.S. government, calling its placement "unlawful and unconstitutional" and denying any ties to China's military.

In March, under the new Biden administration, a federal judge temporarily blocked enforcement of the blacklisting, citing the U.S. government's "deeply flawed" process for including it in the ban.

Soon after that victory, Reuters reported that other Chinese firms placed on the same blacklist were considering similar lawsuits

Xiaomi was among the more high-profile Chinese technology companies that former President Donald Trump targeted for alleged ties to China's military in the waning days of his administration.

Trump had made countering the rise of Beijing a centrepiece of his administration's economic and foreign policy.

Xiaomi's local smartphone rival Huawei Technologies Co Ltd was also put on an export blacklist in 2019 and barred from accessing critical technology of U.S. origin, affecting its ability to design its own chips and source components from outside vendors.

The measures effectively crippled the company's smartphone division.

Later, the U.S. Department of Defense placed similar restrictions on China's Semiconductor Manufacturing International Corporation, a firm key to China's national drive to boost its domestic chip sector.

(Reuters)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more