Chinese technology company Xiaomi will be removed from the blacklist of companies, following a final order by the U.S. District Court for the District of Columbia. This comes days after the Joe Biden administration had announced that the administration would be removing Xiaomi from the Department of Defense blacklist, reversing a move by former president Donald Trump. The court’s final order has vacated the US Department of Defense’s designation of Xiaomi as a Communist Chinese Military Company” (CCMC). Xiaomi was one of the popular Chinese companies that the Trump administration had acted against in the final months in office, with allegations of links to the Chinese military.
“Xiaomi (the “Company”) is pleased to announce that on May 25, 2021 at 4:09 pm (Eastern Standard Time), the U.S. District Court for the District of Columbia issued a final order vacating the U.S. Department of Defense’s designation of the Company as a “Communist Chinese Military Company” (CCMC). In vacating the designation, the court formally lifted all restrictions on U.S. persons’ ability to purchase or hold securities of the Company,” says a Xiaomi spokesperson, in a statement shared with News18. They go on to say, “The Company reiterates that it is an open, transparent, publicly traded, independently operated and managed corporation.” This means the company can now attract investment from individuals and corporations in the US.
Earlier this month, the US Government announced that they’ll be removing Xiaomi from the blacklist that the previous administration had added the Chinese tech company to. The US Department of Defense, at the time, had designated Xiaomi as having ties to China’s military and placed it on a list that would restrict US investment in the company. Xiaomi’s local smartphone rival Huawei was also put on an export blacklist in 2019 and barred from accessing critical technology in the US.
Just days after the Trump administration added Xiaomi to the blacklist, in what is seen by many its final parting shot at China, the company took legal recourse. Xiaomi sued the United States Department of Defense and Department of Treasury for listing the company as “Communist Chinese Military Company” and filed the lawsuit in the United States District Court for the District of Columbia.
In January, the United States’ Department of Defense under outgoing US President Donald Trump had added nine Chinese companies to a blacklist of companies that are alleged to be working with the Chinese military. Smartphone maker Xiaomi is also a part of the list of nine companies that are alleged to be “Communist Chinese military companies," operating either directly or indirectly within the United States. This came in accordance with the statutory requirement of Section 1237 of the National Defense Authorisation Act of 1999 in the US.