The US government has removed the Chinese technology company Xiaomi from its investment blacklist. Towards the end of his term, President Donald Trump added Xiaomi to a list of companies deemed to have ties with the Chinese military.
With a “Chinese Communist military company” tag, US investors would have been blocked from funding the company. Existing US investors had until November 11 in case the designation went into effect.
However, the Chinese tech company sought help from the court, which helped save the company from the impending blacklist in March. The court termed the designation as “arbitrary and capricious,” issuing a preliminary injunction to prevent it altogether.
Fast forward to now, Xiaomi, in conjunction with the Department of Defense, “have agreed upon a path forward that would resolve this litigation without the need for contested briefing.”
Earlier this year, Xiaomi decried that the blacklist would lead to “immediate and irreparable harm.” However, Xiaomi’s “Chinese Communist military company” designation won’t have had high impacts as compared to the so-called US blacklist that Huawei and dozens of its affiliates were placed under.
The major concern for Xiaomi was investment and reputation.
At the time, it said that a substantial number of its investors are from the US. The company also said three US investment groups are among the top-ten holders of its ordinary shares.