The US admits that Xiaomi is not a ‘communist Chinese military company’ after all

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The US has formally removed Xiaomi from its trade blacklist. The US District Court for the District of Columbia issued a final warrant yesterday that cleared the Department of Defense’s designation of Xiaomi as a “Communist Chinese Military Company” (CCMC), which allegedly prohibited Americans from investing in the Chinese consumer technology giant .

The company is grateful for the trust and support of its global users, partners, employees and shareholders, a Xiaomi spokesperson said in a statement. The edge. “The company reiterates that it is an open, transparent, listed, independently operated and managed company. The company will continue to provide reliable consumer electronics products and services to users, relentlessly building great products at fair prices, so that everyone in the world can enjoy a better life through innovative technology. “

The US issued the CCMC designation on Jan. 14, the last week of the Trump administration. Xiaomi sued the government the following month and won a preliminary injunction to block the designation in March, with a judge describing the blacklist as “arbitrary and erratic”. Earlier this month, Xiaomi and the DoD announced that they would reach an agreement to resolve the matter among themselves.

While Xiaomi has managed to get out of the tangle with the US administration, the Biden administration has given no indication that Trump’s sanctions against Huawei will be lifted. Huawei’s consumer division has been paralyzed by the resulting inability to do business with US-based companies, but the company also makes network equipment that several politicians have accused of posing a threat to national security. This week, founder and CEO Ren Zhengfei reportedly sent an internal memo to staff saying Huawei should focus on software as a way to circumvent US sanctions.