Xiaomi removed from blacklist15. May 2021
Xiaomi removed from blacklist
After a joint status report was filed in a U.S. court earlier this week stating that Xiaomi and the U.S. Department of Defense have agreed to settle the lawsuit over the company’s listing as a “Communist Chinese Military Enterprise.” This would mean that Chinese smartphone maker Xiaomi will be removed from the “blacklist.”
The deletion, according to experts, is an indication that the sanctions against Chinese companies are not justified.
Earlier this year, Xiaomi, along with eight other Chinese companies, was blacklisted by the U.S. government for suspected ties to the Chinese military, which would have resulted in delisting from U.S. stock exchanges and removal from global benchmark indexes. As a result, Xiaomi sued the Department of Defense and the Department of the Treasury in January.
In March, District Judge Rudolph Contreras temporarily halted the action, saying the U.S. government’s move was “arbitrary and capricious” and did not grant the company due process rights.
“The removal from the blacklist has boosted Xiaomi’s confidence in further expansion overseas. The move will contribute to cheaper and high-quality electronic products for consumers,” said Ding Jihua, a compliance expert from the China Council for the Promotion of International Trade.
Globally, Xiaomi is now the third largest smartphone brand after Samsung and Apple. According to Xiaomi, the company’s global smartphone shipments rose 62 percent to 49 million units in the first quarter of this year.