Days before the end of the Trump administration, the US Department of Defense put Chinese electronics company Xiaomi on a list of “Communist Chinese military companies.” The move could have had major financial implications for Xiaomi if it had taken full effect.
But now the Biden Administration Defense Department says it will remove Xiaomi from the Blacklist.
The move comes in response to a lawsuit filed by Xiaomi. Bloomberg reports that the US officials have agreed to lift the designation, although specific details haven’t been hashed out yet.
Xiaomi is one of the world’s largest smartphone makers, but the company also makes a wide range of other products including laptops, televisions, media streamers, headphones, charging accessories, robotic vacuum cleaners, smart home products, and wearables (like the Mi Fit activity tracker I’ve had clipped to my belt for the last year and a half).
Only some of those products are sold in the US, but the US restrictions imposed by the Trump administration would have likely taken a heavy toll on the company, as the blacklisting would have required US investors to sell or divest all shares in the company by November.