Xiaomi Corp and the US government have reached an agreement to remove from a blacklist by the Trump administration that could limit US investment in the Chinese smartphone maker.
Illustration. The Beijing-based smartphone giant sued the government earlier this year, after the US Department of Defense under former President Donald Trump issued an order designating the company as a Chinese military company. This will result in the deletion of US exchanges and deletion of names from global benchmark indices. The US Department of Defense has now agreed that the final order ignores the designation “would be appropriate,” according to a filing filed in US courts on May 11. Hong Kong-listed Xiaomi did not immediately respond to a request for comment. The Pentagon representative was not immediately available for comment. Shares of Xiaomi rose 6.7% during the session in Hong Kong on May 12. “The parties have agreed to a direction that will resolve this lawsuit without the need for a controversial press conference,” according to the filing. Stakeholders are negotiating specific terms and will submit a joint proposal by May 20. Xiaomi, which makes robot vacuums, electric bicycles and wearable devices along with smartphones, was an unexpected target for the Trump administration. Co-founded by billionaire businessman Lei Jun more than 10 years ago, with US chip technology company Qualcomm as one of the earliest investors, Xiaomi insists it is not owned or controlled by the Chinese military. National. The deal comes after a US court in March sided with Xiaomi in the lawsuit and halted the ban. US regional judge Rudolph Contreras said at the time that Xiaomi was likely to gain a complete reversal of the ban once the lawsuit opened and issued an initial order to prevent the company from suffering “irreparable damages. “. The deal marks a rare victory for China’s tech giants to get caught in the sights of the US government, as the two countries clash on issues ranging from trade to human rights and the right to rule. of Hong Kong. In November, Mr. Trump signed a ban on US investment in military-owned or controlled Chinese companies aimed at exerting pressure on Beijing over what the US describes as abusive businesses. use. The order against Xiaomi, along with a number of other Chinese companies, was issued during the weak days of his administration. Trump has also pursued other Chinese giants including ByteDance, owner of popular video-sharing app TikTok and Tencent Holdings, which owns the WeChat super app. Telecom equipment maker Huawei Technologies Co was hit hardest after it was banned from buying US-made parts and shutting down infrastructure projects around the world.
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