Trade war: US government removes Xiaomi from blacklist

The Chinese smartphone manufacturer Xiaomi has prevailed in a legal battle against the US government. The US Department of Defense is removing Xiaomi from the list of companies that are banned from trading in the US because of their ties to the Chinese state or military. Xiaomi had previously obtained an injunction against the measures.

Against the background of the trade war between the United States and China, US President Trump issued a decree prohibiting US citizens and companies from trading in securities of Chinese companies that work for the People’s Liberation Army of the People’s Republic of China or belong to state institutions.

Shortly before the handover to incumbent President Joe Biden in mid-January, the Trump administration also blacklisted Xiaomi for these companies, thereby preventing the manufacturer’s securities from being traded on the US stock exchange. Huawei and the three largest Chinese network operators have also fallen out of favor.

Xiaomi had sued against inclusion in the blacklist and obtained an injunction, whereupon the US Department of Defense had to suspend the sanctions for the time being. The judge followed Xiaomi’s argument that the blacklist was not sufficiently justified.

In addition, the government had exceeded its powers and incorrectly cited and interpreted the administrative law basis for the measures, the judge found – and had indicated that Xiaomi’s lawsuit should also be successful in the main proceedings.

The Ministry of Defense got the hint and does not want to appeal the injunction. Instead, the US government has applied– The court should annul Xiaomi’s January blacklisting. Details should be clarified by May 20th.


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