Smartphone maker Xiaomi says US court has formally lifted investment ban

May 26, 2021 6:38 pm

Chinese smartphone maker Xiaomi said on Wednesday that a U.S court has overturned the U.S defense department’s decision to blacklist it and lifted all restriction on US persons or firm investing or holding its stock.  

Detail: The US District Court for the District of Columbia issued a court filing that ordered the U.S Department of Defense to remove Xiaomi from the blacklist, according to Xiaomi’s exchange filing to the Hong Kong exchange on Wednesday.

In November, 2020, 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.

In January, Xiaomi filed a lawsuit to reverse the Pentagon’s accusation that Xiaomi link to China’s military. According to the court filing, Xiaomi denied the accusation and said the placement “was unlawful and unconstitutional.”

Context:   China Mobile, China Unicorn and China Telecom said on May 8 that they would be delisted by the New York Stock Exchange for similar alleged accusation of “Communist Chinese military companies”.  

In response to delist, China’s three stated-owned telecom operators said the direct impact on the companies’ business development and market operation is limited given the insufficient liquidity, low-volume trading of companies’ shares on NYSE.  

Beside Xiaomi, Trump administration had also sanction other Chinese technology behemoths, popular names 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.