The Department of Defense of the The United States will remove Xiaomi from its blacklist. This will allow, among other things, that North American investors can invest in the company of Chinese origin without any type of restriction. The news has caused a rise in the price of its share on the Hong Kong stock exchange.
Both parts they have not yet closed the details of the agreement which ends Xiaomi’s inclusion in the US blacklist. However, both parties have agreed to present the final proposal before the court in charge of the case before May 20, 2021.
The United States included Xiaomi on this blacklist last January, still under the Donald Trump administration. The Chinese brand subsequently filed a lawsuit in which it described what happened as “unconstitutional.” Weeks later, a judge agreed with Xiaomi by temporarily blocking its inclusion on the blacklist.
The administration of Donald Trump included Xiaomi in this blacklist alleging links with China’s military services. A claim that the Chinese brand has repeatedly denied. On this blacklist are many other Chinese companies, including Huawei.
The first sign of peace between the United States and Chinese tech companies like Xiaomi?
Xiaomi Mi 11
This movement could be interpreted as a first sign of peace between the US and Chinese tech companies (like Xiaomi). However, there are still multiple restrictions imposed by the North American country on other companies of Chinese origin, so the situation between the two countries seems to be tense even under the administration of Joe Biden.
The most notorious case is that of Huawei, which climbed significantly in 2019. Since then, the Chinese brand has not been able to pre-install Google services on its mobile phones, essential to gain traction in the western smartphone market. Months later, Huawei also saw its access to essential components for the manufacture of many of its products restricted, significantly undermining its consumer business.