US government takes Xiaomi off blacklist
US investors will be allowed to buy and retain shares in Xiaomi
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The US Department of Defense has removedXiaomifrom a government blacklist that prevented American investment in the smartphone manufacturer.
The company was one ofseveral Chinese firmsto be blacklisted in the final days of the Trump administration due to perceived links with the Chinese military.
Xiaomi denied these allegations and responded with a lawsuit that argued the status was “unlawful and unconstitutional.” A judge then temporarilyblocked the enforcementof the ruling, stating the government process for issuing the ban was flawed.
Xiaomi blacklist
Now the blacklisting has been reversed, and the two parties have agreed to resolve outstanding litigation without any further contest, according to a court filing seen by Reuters. Xiaomi share rose 6% on receipt of the news and the company has been contacted for comment.
Although Xiaomi has a limited presence in the US, it is now the world’s third biggest smartphone manufacturer, with its affordable, feature-packed phones driving significant sales in China and beyond.
This includes Western Europe, which has proved to be a tricky region for Chinese vendors to crack, except Huawei. Coincidentally, Xiaomi has been one of the main beneficiaries of Huawei’s struggles with the US.
Technology had proved to be a significant arena for Trump’s foreign policy towards China and Huawei was the most high-profile casualty.
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In addition to pressuring other governments toban Huaweifrom their rollouts of 5G networks, the Trump administration effectively banned the company from dealing with suppliers based in the US or who relied on American technology. This effectively dealt a deathblow for Huawei’s ambitions to become the world’s leading smartphone manufacturer and led to the sale of itsHonorsubsidiary.
Huawei is now believed to have fallen to be the worlds’ seventh largest manufacturer.
ViaReuters
Steve McCaskill is TechRadar Pro’s resident mobile industry expert, covering all aspects of the UK and global news, from operators to service providers and everything in between. He is a former editor of Silicon UK and journalist with over a decade’s experience in the technology industry, writing about technology, in particular, telecoms, mobile and sports tech, sports, video games and media.
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