China’s smartphone maker Xiaomi and the U.S. government have reached an agreement to set aside a Trump administration blacklisting that could have restricted U.S. investment in the company, a court filing showed.
Earlier this year, Xiaomi along with eight other Chinese firms were added to a blacklist of alleged Chinese military companies by the U.S. Defense Department under former President Donald Trump, which requires American investors to divest their holdings of the blacklisted firms by November 11, 2021.
The ban came after Trump’s earlier executive order in November 2020 banning Americans from investing in these Chinese firms
In response to the impending delisting report, China’s Foreign Ministry Spokesperson Hua Chunying said in a daily news briefing that China supports its companies to safeguard their legitimate rights and interests through legal channels.
“We hope the United States will rectify the mistakes of the previous administration, providing a fair, just and non-discriminatory business environment for the normal operations of Chinese companies,” Hua said.
In late January, Xiaomi sued the U.S. Defense and Treasury departments challenging the blacklisting. At the time, the company said it has always adhered to relevant laws and regulations in places they operate.
The electronic device maker also clarified that its services and products are used for civilian or commercial purposes, and that the company is not owned or controlled by the Chinese military nor is it a Chinese military company as defined under U.S. law.