Less than a week before Joe Biden was sworn in as US president, the Trump administration added Xiaomi to the US government’s controversial blacklist. Now this move is undone. The US Department of Defense has reached an agreement with Xiaomi, which is a result, among other things, A recent lawsuitWhere the Chinese giant filed a lawsuit against the US government. The department declared that removing the Chinese company from the blacklist “would be appropriate”. According to the court documents, “the parties agreed to a procedure that would enable the dispute to be resolved without the need for a questionable hearing.” The specific terms are still under negotiation, but the final proposal must be submitted before May 20.
Xiaomi has been removed from the US blacklist. The court and then the government administration decided that there were no grounds for imposing sanctions on the Chinese giant. Huawei cannot count on similar comfort.
In March, a US court sided with Xiaomi at the trial and temporarily suspended the ban. US District Court Judge Rudolf Contreras said Xiaomi is likely to win a complete annulment of the ban as litigation begins and issued a preliminary order to prevent “irreparable harm”. Xiaomi was originally classified as a communist military company based on alleged ties with the Chinese military. A blacklist may limit US investment in the company and remove it from US stock exchanges.
In response, the brand filed a lawsuit against the government describing the blacklist as “unconstitutional.” Throughout the process, Xiaomi has claimed to be an independent company that is not owned or controlled by the military. Changing Xiaomi’s perception will allow them to catch their breath, as many other Chinese companies do. Unfortunately, Huawei is unlikely to experience a similar transformation in the near future. The Biden administration said earlier it saw no reason to lift the sanctions on Huawei. There is also uncertainty about the current U.S. government position on ByteDance, the owner of TikTok.