According to court documents, the US Department of Defense will remove Chinese firm Xiaomi from a government blacklist, thereby marking a reversal by the Biden administration to one of former President Donald Trump’s last policies. Trump took aim at Beijing before leaving office.
Court documents state that the Xiaomi company and the US government will agree to settle their ongoing lawsuits, thereby ending the conflict between the hardware company and Washington.
A Xiaomi spokesman said the company is closely monitoring the latest developments without elaborating.
The company’s shares rose more than 6% in Hong Kong when news of the decision spread. The company’s stock price has fallen about 20% since being blacklisted in January 2021.
The US Department of Defense was not immediately available for comment. A Department of Justice spokesman declined to comment on the matter.
The Ministry of Defense has designated Xiaomi with ties to the Chinese military and placed it on a US investment restriction list.
There are currently seven other Chinese companies that are also subject to similar restrictions.
Xiaomi has attacked by filing a lawsuit against the US government, asking the court to declare the designation “illegal and unconstitutional” and deny any ties to the Chinese military.
In March 2021, a federal judge ruled to temporarily block Xiaomi’s blacklisting. The Biden administration has agreed not to challenge that ruling.
Shortly after that ruling, Reuters reported that other Chinese companies on the blacklist were also considering similar lawsuits.
Xiaomi is one of the famous Chinese technology companies that former President Trump targeted due to its relationship with the Chinese military.
Mr. Trump made countering Beijing’s rise a central focus of his economic and foreign policy while he was in office.
Xiaomi’s Chinese smartphone rival Huawei was also put on an export blacklist in 2019, and banned from accessing key US-origin technology, thereby affecting its ability to design. own chips as well as source components from external suppliers. The measures have crippled the company’s smartphone business.
Later, the US Department of Defense placed similar restrictions on China Semiconductor Manufacturing International Corporation (SMIC), a company that plays a key role in China’s national effort to promote push its domestic chip sector.
According to The Epoch Times,