Chinese smartphone manufacturer Xiaomi is no longer on the US government blacklist. The Trump administration had put the company, along with several other Chinese firms, on the blacklist of alleged Communist Chinese Military Company or CCMC. Xiaomi had opposed the decision and had swiftly moved to a US District Court the decision of the Trump administration. As a result of the decision, Americans were barred from buying or holding stocks of Xiaomi. But now Xiaomi has been removed from the list and the company reiterated that it is a transparent and publicly traded business. The US District Court for the District of Columbia has lifted all bans from Americans that had restricted their ability to hold securities of purchase stocks of the company.
Reacting to the order to the court, Xiaomi said that it is grateful for ‘the trust and support.’ In a statement issued under the name of the company’s chairman Lei Jun, the company said thanked all users, partners, employees, and shareholders for extending support during tough times. The smartphone manufacturer said it is an independently operated and managed corporation. “We will continue to work hard for providing reliable consumer electronic products to users worldwide.” Soon after the order by the US court, Xiaomi witnessed a jump in share prices. Despite the ban and difficulties faced while challenging the decision, tech analysts felt that Xiaomi’s victory was just a matter of time as the ban was ‘unconstitutional.’
Xiaomi has been removed from the list days after the company said that it had reached an agreement with the Pentagon. There were a total of nine companies there were added to the blacklist of CMCCs by the Trump administration. After the ban, the investors were given a deadline of March 15 to divest their holdings in those firms. Xiaomi, the world’s third-largest smartphone manufacturer as per IDC, is not the only firm that is celebrating victory. Another Chinese company Luokung Technology has also been removed from that list. Luokung Technology is a big data provider and had sued the government of the United States in early March. Meanwhile, FTSE Russell has announced that it will add Xiaomi and Luokung back to its global indexes. The process of adding will be done in two tranches.