After having blacklisted Chinese electronic maker Xiaomi and banning any trading with with company, on grounds of its alleged association with the Chinese military, the United States has decided to formally grant it its white-listed status back. The US District Court in Columbia issued the order, formally lifting the ban on investments made by American citizens into the company.
Xiaomi No Longer Deemed a CCMC
The news was announced through a statement issued by Xiaomi itself, wherein it said that US Department of Defense’s designation of company as a “Communist Chinese Military Company (CCMC)” has officially been vacated on May 25. All restrictions on the purchase and hold of Xiaomi’s securities by US citizens have also been lifted.
The statement further added that Xiaomi is an “open, transparent, publicly-traded, and independently operated” corporation. The company has thanked its many “global users, partners, employees as well as all its shareholders.”
Long Drama Between January to March
The removal of the ban and blacklisting of Xiaomi had come in March 2021, following which, both the parties had been carrying out discussions to reach an agreement. The talks finally concluded on May 25, with the US withdrawing the ban.
Xiaomi’s status had fallen to the CCMC designation in January this year, when former POTUS Donald Trump was serving his last week in Office. The Biden administration, however, has taken the verdict back. Back then, the company had been added to the United States’ military blacklist, along with eight other companies, including Huawei. This meant that US citizens could no longer purchase and possess any Xiaomi securities.
Then, the company had filed a lawsuit against the US government over the issue, back in February. This had led to the Washington D.C. Court granting it a preliminary injunction against the designation, in March.
As For Huawei
Meanwhile, Huawei is still in a legal tussle with the US government over its own blacklisting.