Xiaomi dropped from the U.S. investment ban blacklist

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Xiaomi US Defense Department Blacklist Agreement

With the Huawei dilemma turning for the worse, some Chinese companies may be contemplating for their future. But then again not all tech giants are the same. Some of Huawei’s methods have been questionable while other Chinese brands are doing things the right way. Next to Huawei, there is ZTE being banned and not able to do business with US firms. In early January, Xiaomi was added to the US investment ban blacklist. It was done a week before the Trump Presidency was over.

Xiaomi being added to the U.S. investment ban blacklist prompted the Chinese company to file a lawsuit against the U.S. Defense. Now we’re learning the government has agreed to remove Xiaomi from the blacklist.

This is good news for Xiaomi. It once said it is “not owned or controlled or otherwise affiliated with the Chinese government or military, nor is it owned or controlled by any entity affiliated with the Chinese defense industrial base.” This means Xiaomi can continue freely doing business in the country.

The blacklist was meant to restrict American investment in Xiaomi. That’s not happening because the move was set aside after a lawsuit was filed against the government. The U.S. Defense Department and Xiaomi had agreed to move forward.

Xiaomi didn’t post a comment or statement yet but the filing said, “The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing.” Specific terms and will have yet to be finalized later this month.

With Huawei almost out of the picture, dropping out of the Top 5 in world rankings when it comes to smartphones, Xiaomi has moved up to third rank after Samsung and Huawei. It’s back as the top mobile OEM in China several years after Huawei overtook the brand. Huawei’s situation is not about to change anytime soon. Xiaomi and other Chinese companies can take advantage of that but still with caution.

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