A new report has surfaced that Xiaomi Corp. and the US government have come to an agreement that will remove the Chinese company from a blacklist it was placed on by President Trump. By being on that blacklist, Xiaomi was banned from any American investment and was unable to procure any hardware designed in the US. Earlier this year, the Chinese smartphone maker sued the US government after the US Department of Defense issued an order designating the firm as a Communist Chinese Military Company.
That designation would’ve led to Xiaomi being delisted from US exchanges and deleted from global benchmark indexes. According to a court filing in the US this week, the Department of Defense has reportedly agreed that a final order vacating the designation would be appropriate. Neither the Pentagon nor Xiaomi has offered any comment on the move.
The court filing stated that both parties in the matter have agreed on a path forward that resolved the litigation without the need for a contested briefing. The court filing also noted that the parties are negotiating over specific terms and will file separate joint proposals before May 20. The news was enough to push shares of Xiaomi stock up 6.7 percent in Hong Kong trading.
While Xiaomi is mostly known for smartphones, it makes a range of products, including robotic vacuum cleaners, wearable devices, and electrified bikes. President Trump had led a charge to place the company on a blacklist due to fears that its ties with the Chinese government could lead to a potential for hacking and data theft in the US.
Xiaomi had filed a suit in US courts, and that suit resulted in a temporary halt on the ban in the US. The judge had noted that Xiaomi was likely to win a full reversal of the ban as the litigation unfolded, and an injunction was issued to prevent what the judge called “irreparable harm” to the company.