Governance

Xiaomi Escapes The U.S. Trade Blacklist After Lawsuit

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Logo-Xiaomi
Image courtesy Xiaomi

The U.S. government has agreed to not place Xiaomi on its trade blacklist, undoing a move that was earlier this year by the Trump administration. This was reported by Bloomberg stating that the Chinese smartphone firm managed to win a U.S. court appeal over the initial ban.

The company had fallen victim to the U.S.-China trade war that initially saw Huawei receive the high-profile ban that has lasted for over 18 months now. Considering the damages that Huawei has had to deal with ever since the ban there is no doubt that Xiaomi would have been ruined even more if the ban was not lifted.

“The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing,” according to filings seen by Bloomberg. 

Although the agreement between Xiaomi and the U.S. Department of Defense is not fully met, negotiations are said to have begun over specific terms, with a joint proposal expected before May 20th.

Conversely, Xiaomi’s potential move to the U.S. trade blacklist was also less restrictive. This is mostly because the tech firm had seen massive growth at Huawei’s in recent years since the trade restrictions did not directly affect supply chains.

Additionally, Xiaomi’s lack of a foothold in the telecommunications space worked in its favour contrary to the faults that Huawei was accused and convicted of.

Xiaomi has also been strong in its denial against any affiliations with the Chinese government. Speaking to The Verge in January said that it “is not owned, controlled or affiliated with the Chinese military, and is not a ‘Communist Chinese Military Company.’”

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