Xiaomi gets off the US blacklist

The details of the agreement for the smartphone maker to resume trade with the United States are not yet known

The Trump Administration included Xiaomi in the ‘blacklist’ last January for its alleged links with the Chinese Army

Xiaomi, the Chinese manufacturer of ‘smartphones’, has managed to get out of the ‘black list’ of the United States, which prohibits the trade of the American country with the companies that make it up. Joe Biden’s Defense Department has reached an agreement with the technology group to remove him from the list, in which he had been included earlier this year for alleged ties to the Chinese Army.

In this way, the Biden Administration reverses one of the last decisions of the Donald Trump government team. The previous US Executive decided to include Xiaomi on its list of sanctioned, on January 15 of this year, in the week prior to the presidential transition. Although Huawei was the main focus in former President Trump’s attempts to limit the influence of Chinese tech companies, other companies such as Xiaomi have also been affected in this trade war.

Impact for Xiaomi

Following the decision of the Trump Executive, Xiaomi decided to file a lawsuit against it. Already in March, la US Justice suspended the prohibition on a precautionary basis to invest in the company, considering the argument about the links between the Armed Forces and the Chinese Government “deeply flawed”.

The Department of Defense, which decided not to appeal the ruling, had based these alleged links on the delivery to Xiaomi of a Chinese state award, but the judge considered that it was not a sufficient reason, since hundreds of companies have received this award and it is becoming the standard in the technology sector.

The intention of the Department of Defense was “countering Beijing’s military-civil fusion strategy”, which supposedly tries to modernize its military capabilities with technology and knowledge obtained by “companies, universities and research programs that appear to be civilian entities.”

The announcement of the exit from the ‘black list’ has already brought benefits to the Chinese giant. “The US Department of Defense has reached a peaceful agreement with Xiaomi on this litigation and has removed it from the list of ‘Chinese communist military companies’,” the manufacturer said in a statement sent to the Hong Kong Stock Exchange, where it is listed. Immediately afterwards, the technology company recovered strength in the Hong Kong stock market and ended the session with gains of 6.1%.

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