The US government and Xiaomi Corp. have reached an agreement to drop the Trump Administration’s blacklisting on the Chinese company, Bloomberg reports.
Xiaomi had previously made legal action and has sued the US government when former president Donald Trump labeled Xiaomi as a Community Chinese Military Company. This would’ve led to the company being delisted from US exchanges.
The United States Defense Department has now agreed to drop those previous claims under President Joe Biden as Xiaomi proves that it is not owned or controlled by the Chinese military.
Xiaomi shares rallied after this news, peaking at 6.7% on Wednesday. This marks as a rare win as the US government intends to continue putting pressure on China. Xiaomi, aside from making smartphones, also makes power banks, electric bikes, bags and robot vacuum cleaners, amongst others. A U.S. court’s preliminary decision went in favor of Xiaomi and a district judge has stated that Xiaomi is likely win this case for a full reversal.
Huawei is the hardest hit amongst other Chinese companies with extensive sanctions against the company. The Biden Administration currently shows no sign of fully removing the Trump Administration’s sanctions on other blacklisted companies as current US President Biden has extended a 2019 Trump order blocking US companies from buying telecoms equipment from Huawei citing national security risks.