SPY423.72-0.59 -0.14%
DIA343.46-1.66 -0.48%
IXIC14,097.78+28.36 0.20%

UPDATE 1-U.S. removes Xiaomi from government blacklist, parties to resolve litigation

05/12/2021 03:04
UPDATE 1-U.S. removes Xiaomi from government blacklist, parties to resolve litigation

Adds details

- The U.S department of Defense will remove Chinese smartphone maker Xiaomi Corp 1810.HK from a government blacklist, a court filing showed.

The filing stated that the two parties would agree to resolve their ongoing litigation without further contest, bringing to an end a brief and controversial spat between the hardware company and Washington.

Xiaomi did not immediately respond to a Reuters request for comment.

Earlier this year the U.S. Department of Defense, under the Trump administration, designated the firm as a company with ties to China's military and placed it on a list that would restrict U.S. investment in the company.

Xiaomi quickly responded 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, under the new Biden administration, a federal judge temporarily blocked enforcement of the blacklisting.

Shares in Xiaomi rose over 6% in Hong Kong as news of the decision spread.


(Reporting by Aakriti Bhalla in Bengaluru and Josh Horwitz in Shanghai; Editing by Christopher Cushing & Shri Navaratnam)

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