After being blacklisted by the US government, Xiaomi pushed back with a legal complaint filed against the US Defense and Treasury Department. Today, Xiaomi has won that battle, as the US has agreed to remove the company from the blacklist after former President Trump designated the company as a “Communist Chinese Military Company”.
By being placed on this blacklist, Xiaomi would have had to be de-listed from US exchanges and removed from global benchmark indexes. Currently, other companies such as Huawei and ZTE remain on that blacklist, although this decision between Xiaomi and the US could lead to some major changes.
According to the filing (via Bloomberg), the following statement was provided:
“The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing,”
Both sides are currently working on a proposal that must be submitted before May 20th. So it’s only a matter of time before the proposal is agreed upon and Xiaomi can resume business here in the States. Regardless of what happened under the previous presidency, Xiaomi has maintained that it is not controlled by the Chinese government, and has always been an independent, publicly-traded company.
It will be interesting to see how this plays out for the future of Xiaomi’s business and partnerships here in the U.S. After seeing its rise to overtake Apple in European market share in Q1 2021, this year could end up being rather good for Xiaomi.