Chinese company Xiaomi was labeled a national threat during the last days of US President Donald Trump and thus blacklisted. However, following a lawsuit from Xiaomi to reverse the ban, the US government and the company have reached a settlement that will remove the Chinese company from being blacklisted totally.
According to Bloomberg, "The Parties have agreed upon a path that would resolve this litigation without the need for a contested briefing", the filling read, not stating whether the agreement included any conditions for removal. However, the parties involved are negotiating over specific terms and will file a separate joint proposal before May 20.
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A spokesperson for Xiaomi said the company is watching closely watching the developments, without elaborating.
News of the decision sent the company's shares to rocket over 6% in Hong Kong as the development progressed. Xiaomi saw its shares took a 20% nosedive since it was placed on the US blacklist in January 2021.
Though Xiaomi was never added to the entity list, the move by Washington blocked them from acquiring goods and services from US vendors and as well required American investors to divest their stakes in the company.
The US Department of Defense had designated the firm as having ties to China's military, a thing Xiaomi has denied.
Xiaomi was among the high-profile Chinese tech companies that former President Donald Trump targeted for alleged ties to China's military.
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Soon after Xiaomi's victory, other Chinese companies that were placed under similar restrictions were considering similar lawsuits.
Xiaomi's local smartphone rival Huawei was also put on an export blacklist in 2019 and banned from accessing critical US tech, affecting the companies ability to design its own chips and source components from outside vendors.
This ban also meant the company wouldn't be able to load the Android OS and other key Google apps such as Gmail, YouTube, Maps, etc. on their Smartphones has cost the company billions of losses and has almost crippled its smartphone division.
Soon after Xiaomi's victory, other Chinese companies that were placed under similar restrictions were considering similar lawsuits.