The U.S Department of Defense will remove China’s Xiaomi Corp from a blacklist that restricted American investment in the Chinese smartphone maker.
Detail: In a filing released by Washington, DC., federal courts on Tuesday, lawyers for both sides agreed removing Xiaomi from the blacklist “would be appropriate.”
In January, Xiaomi filed a lawsuit to reverse the Pentagon’s accusation that Xiaomi tie with China’s military. In the court filing, Xiaomi denied the accusation and said the placement “was unlawful and unconstitutional.”
Xiaomi won the lawsuit in March.
Shares of Xiaomi rose almost 6% in Hong Kong Stock Exchange following the filing disclosure. Xiaomi’s share price has plummet roughly 20% since it was placed on the blacklist by the Trump administration.
Context: In November, Trump has signed an order that restricted American investment in Chinese firms that have alleged links to China’s military. The order put Xiaomi in a blacklist, alongside eight other Chinese firms.
Trump had also sanction other Chinese behemoths including ByteDance, owner of the hugely popular video-sharing app TikTok, and Tencent Holdings, which owns super app WeChat, Telecomm giant Huawei and China’s Semiconductor Manufacturing International Corporation.
Xiaomi’s blacklist followed a similar October 2019 blacklist when the Commerce Department added 28 Chinese public security bureaus and companies, including some of China's top artificial intelligence startups and video surveillance company Hikvision.