© Reuters. File Photo: The Xiaomi logo will appear in the company’s office in Bangalore, India, on January 18, 2018. REUTERS / Abhishek N. Chinnappa / File Photo
Washington (Reuters)-The Pentagon will remove China’s Xiaomi (OTC :) Corp from the government’s blacklist, court filings said.
The court filing states that the company and the U.S. government have agreed to settle the proceedings and end the brief and controversial dispute between the hardware company and Washington, which further exacerbated Sino-US relations. It was.
“The Biden administration is deeply concerned about the possibility of US investment in companies related to the Chinese military, and pressure on such companies,” said Emily Horn, a spokesman for the White House National Security Council. We are committed to maintaining this. ”
A Xiaomi spokeswoman said the company is closely watching the latest developments without giving details.
The company’s stock surged more than 6% in Hong Kong as news of the decision spread. Since being blacklisted in January during the Trump administration’s decline, the company’s share price has fallen by about 20%.
The Pentagon did not comment immediately. A spokesman for the Justice Department declined to comment.
The ministry has designated the company as having a relationship with the Chinese military and has put it on the list to limit investment in US companies.
The other seven Chinese companies were subject to similar restrictions.
Xiaomi filed a proceeding against the US government, calling its placement “illegal and unconstitutional” and continuing the attack by denying relations with the Chinese military.
In March, a federal judge temporarily blocked the enforcement of the blacklist because of the US government’s “serious flawed” process for including the blacklist in the ban. The judge also suspended an investment ban imposed on Chinese map technology company Luokung Technology Corp last week.
The Biden administration has agreed not to challenge the ruling. “The Trump administration was unable to develop legally sufficient grounds to impose restrictions on the company and forced this action,” Horn said.
Shortly after the victory, Reuters reported that other Chinese companies on the same blacklist were considering similar proceedings. [L1N2LD2YY]
Xiaomi was one of the more well-known Chinese tech companies that former President Donald Trump sought to engage with the Chinese military.
Trump made countering the rise of Beijing the centerpiece of his administration’s economic and foreign policy.
Xiaomi’s local smartphone rival Huawei Technologies Co Ltd was also blacklisted for exports in 2019, banning access to key technologies of US origin, affecting the ability of external vendors to design their own chips and source components. Gave.
This measure effectively crippled the company’s smartphone division.
The US Department of Defense then imposed similar restrictions on China’s Semiconductor Manufacturing International Corporation. This is a solid key to China’s national impetus to boost the domestic chip sector.
Professor Doug Fuller, who is tracking China’s semiconductor sector at City University of Hong Kong, said Xiaomi’s victory was “in hand” for the Biden administration in an effort to correct Trump’s over-China policy at the end of his term. It was an unbearable achievement. “
“I think it’s a sign that Biden is a little softer,” he said. “It has always been ridiculous to call Xiaomi a Chinese military company, but it will be more difficult for companies that are linked to more legitimate defense concerns, or for the (Chinese state) Xinjiang Uygur Autonomous Region.”
U.S. removes Xiaomi from blacklist and reverses jab by Trump By Reuters
https://www.investing.com/news/stock-market-news/us-removes-xiaomi-from-government-blacklist-parties-to-resolve-litigation-2503536 U.S. removes Xiaomi from blacklist and reverses jab by Trump By Reuters