Last January, the U.S. Department of Defense blacklisted Xiaomi, preventing any U.S. company or investor from investing in the company. Xiaomi was considered a CCMC (Chinese Communist military company) and, unsurprisingly, appealed the decision.
Months later, a U.S. judge gave the company reason and said the United States had not provided convincing evidence of the relationship between Xiaomi and the Chinese army, which ended with the blockade being paused. Shortly the day after, the court considered that the veto to Xiaomi was “arbitrary and capricious,” and a compromise agreement was signed to remove Xiaomi from the blacklist, a moment that has finally arrived.
Xiaomi has been removed from the blacklist
This has been confirmed by the company in a statement issued to the media(accessible from the official blog of the company). As detailed in it:
Xiaomi (now the “Company”) is pleased to announce that, yesterday, May 25, 2021, at 16:09 pm (EST), the U.S. District Court for the District of Columbia issued a final order annulling the company’s U.S. Department of Defense designation as a “Chinese Communist Military Company” (CCMC). With the annulment of this designation, the court proceeded to formally lift all restrictions on U.S. citizens to purchase or dispose of Company securities.
Thus, all restrictions that prevented companies and users from investing in the company, which went public on July 6, 2018, remain. Since the company, they have ensured that they are an “open, transparent, publicly traded and independently managed corporation” and will “continue to provide trusted consumer technology products and services for users.”
It should be noted that the blacklist that Xiaomi entered is not the same Huawei blacklist. The list Xiaomi was on is managed by the Department of Defense, while Huawei’s is governed by the Department of Commerce.
For this reason, Xiaomi did not suffer the same problems as Huawei (losing access to Google Mobile Services, among other things). However, after the announcement of the Department of Defense, they did face a significant drop in the value of its shares.