Xiaomi has officially escaped accusations made by US authorities in January, following the signing of a presidential order by Donald Trump, in his last days in office. It put Xiaomi on the Communist Chinese Military Company (CCMC) list, which includes all companies that are suspected or proven to have links to the Chinese military. However, the Chinese company won an appeal in court.
Xiaomi is getting rid of restrictions in the US
“The company is grateful for the support provided by users, partners, employees and shareholders worldwide. Xiaomi repeats that it is an open, transparent, publicly traded, independently operated and managed company. The company will continue to provide electronic products and services to customers and will continue to build extraordinary products at fair prices to enable everyone to enjoy a better life through innovative technology, ”Xiaomi officials said after the company dropped the allegations. .
Under these restrictions, the company would not have encountered problems with partnerships with other US companies, as happened with Huawei when it entered the Entity List. However, his business could have been adversely affected by the fact that American citizens were no longer legally allowed to invest in Xiaomi’s shares. At the same time, those who already had shares were legally obliged to sell all the Xiaomi shares they hold within a few months.
The judge who ruled in favor of Xiaomi called the allegations “arbitrary and capricious.” The US Department of Defense could have appealed the decision, but decided not to. The company and the representatives of the Department have instead reached an agreement, the conditions of which are not currently public.
Xiaomi is now enjoying the benefits of Biden’s cabinet, which does not appear to be seeking to block the Chinese company. At the same time, Huawei’s situation does not seem to have changed with the change of the US government.