Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. will remove Xiaomi from blacklist, reversing jab by Trump

Stock MarketsMay 12, 2021 02:13PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The logo of Xiaomi is seen inside the company's office in Bengaluru, India, January 18, 2018. REUTERS/Abhishek N. Chinnappa/File Photo 2/2

WASHINGTON (Reuters) -The U.S Defense Department will remove China's Xiaomi (OTC:XIACF) Corp from a government blacklist, a court filing showed, marking a reversal by the Biden administration of one of Donald Trump's last jabs at Beijing before exiting office.

The court filing said the company and the U.S. government would agree to resolve their ongoing litigation, bringing to an end a brief and controversial spat between the hardware company and Washington that had further soured Sino-U.S. ties.

Emily Horne, a spokeswoman for the White House National Security Council, said "the Biden Administration is deeply concerned about potential U.S. investments in companies linked the Chinese military and fully committed to keeping up pressure on such companies."

A Xiaomi spokeswoman said the company is watching the latest developments closely, without elaborating.

Shares in the company jumped over 6% in Hong Kong as news of the decision spread. The company's share price has tumbled roughly 20% since it was placed on the blacklist in January in the waning days of the Trump administration.

The Defense Department did not immediately comment. A Justice Department spokeswoman declined to comment.

The department had designated the firm as having ties to China's military and placed it on a list that would restrict U.S. investment in the company.

Seven other Chinese companies were also placed under similar restrictions.

Xiaomi went on the offensive by filing a lawsuit against the U.S. government, calling its placement "unlawful and unconstitutional" and denying any ties to China's military.

In March, a federal judge temporarily blocked enforcement of the blacklisting, citing the U.S. government’s "deeply flawed" process for including it in the ban. The judge last week also suspended an investment ban imposed on Luokung Technology Corp, the Chinese mapping technology company.

The Biden administration has agreed not to challenge that ruling. Horne cited the ruling saying "the Trump Administration failed to develop a legally sufficient basis for imposing restrictions on the company and compelled this action."

'LOW-HANGING FRUIT'

Soon after the victory, Reuters reported that other Chinese companies placed on the same blacklist were considering similar lawsuits. [L1N2LD2YY]

Xiaomi was among the more high-profile Chinese technology companies that former President Donald Trump targeted for alleged ties to China's military.

Trump had made countering the rise of Beijing a centrepiece of his administration's economic and foreign policy.

Xiaomi's local smartphone rival Huawei Technologies Co Ltd was also put on an export blacklist in 2019 and barred from accessing critical technology of U.S. origin, affecting its ability to design its own chips and source components from outside vendors.

The measures effectively crippled the company's smartphone division.

Later, the U.S. Department of Defense placed similar restrictions on China's Semiconductor Manufacturing International Corporation, a firm key to China's national drive to boost its domestic chip sector.

Professor Doug Fuller, who tracks China's semiconductor sector at the City University of Hong Kong, says that Xiaomi's win was "low-hanging fruit" for the Biden administration in its efforts to correct the excesses of Trump's China policy as his term ended.

"I think it is a sign that Biden will be a bit softer," he said. "Calling Xiaomi a Chinese military company was always ridiculous. For firms tied to more legitimate defence concerns, or (Chinese province) Xinjiang, however, it will be more difficult."

U.S. will remove Xiaomi from blacklist, reversing jab by Trump
 

Related Articles

Southwest Airlines CEO Gary Kelly to step down
Southwest Airlines CEO Gary Kelly to step down By Reuters - Jun 23, 2021

(Reuters) -Southwest Airlines Co said on Wednesday long-time Chief Executive Officer Gary Kelly will step down next year to become the executive chairman and will be succeeded by...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (11)
Catholic Man
CatholicMan May 12, 2021 2:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So biden says one thing while he actually does the opposite.
Ad Cline
Ad Cline May 12, 2021 12:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China the land of paranoid dictatorship, Slave labor camps, religious presicution. total government control over business.
David David
David9 May 12, 2021 12:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How? Give examples and explain...
Ad Cline
Ad Cline May 12, 2021 11:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden dennis- when you support the Chinese government you are supporting a government that is paranoid of its own people. A government that supports slave labor.camps a government that wants dictatorship over more than its own country, the Chinese people must rise up and destroy the Chinese Communist party, before the party destroys China.
Ad Cline
Ad Cline May 12, 2021 11:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bidenim dennis, another Chinese zealot supporting. the criminal government in Peking.
Jack Zhang
Jack_A May 12, 2021 10:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what a shame and criminal for a so called rule-of-law country!!!
Roger Miller
Roger Miller May 12, 2021 10:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This administration continues to be walked all over, by China, by Russia, by the Middle East...the US is fast losing it’s leadership role in the world.
Andy Li
Andy Li May 12, 2021 7:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Zack Persie
Zack Persie May 12, 2021 7:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US can't even stand by Trump's lawless actions in court.
Felipe Daniel
Felipe Daniel May 12, 2021 6:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden has a China first, America last policy
Clinton Powell
Clinton Powell May 12, 2021 6:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden” The rise if China is good”. verbtim
Hung Pham
Hung Pham May 12, 2021 6:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You gotta love VaChina Joe
biden dennis
biden dennis May 12, 2021 6:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China should put microsoft, amazon, google, apple, the whole america corporations on black list.
Simon Liu
Simon Liu May 12, 2021 4:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Put the whole China on th list, as the whole China is supporting Chinese Defense and Military!
biden dennis
biden dennis May 12, 2021 4:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China shud put you on blacklist instead
Jeff Chevalier
Jeff Chevalier May 12, 2021 4:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Do you have any idea how much money the US dumps into its military? And you say China is bad?
Ad Cline
Ad Cline May 12, 2021 4:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China uses its military to steal and bully its neighbors.the USA uses its military to put a check on nations that want to steal, bully and use intimidation to control other countries. which is what you get from a paranoid dictatorship like China. if Chinese get there way they will control east Asia both militarily and politically and turn east Asian countries into economic dependents.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email