In the final weeks of Donald Trump’s tenure, the United States Defense Department defined Xiaomi as a “Chinese military communist company” and put it on its blacklist to ban investments by American companies.
But now it looks like the current government, chaired by Joe Biden, would take a step back to allow Xiaomi to operate freely in the country again. The United States has reportedly already agreed to end its veto.
When the Trump administration blacklisted the Chinese company in mid-January, it suggested it was linked to the Chinese People’s Liberation Army. Xiaomi denied it and took legal action against the government.
In March, the judge suspended the blockade on the grounds that it posed no threat to the United States. In fact, he called Trump’s decision “arbitrary and capricious” and suggested that Xiaomi could “suffer irreparable damage” to its reputation and economy.
Now, the US Department of Defense has already agreed to stop calling Xiaomi a “Chinese Communist Military Company” by no longer considering it to be an armed wing of the Chinese government, and has pledged to move forward until dispute resolution.
The exact terms of this deal are unknown, but it is expected to be made public no later than May 20. Removing Xiaomi from the blacklist would give way to new trade relations between the two countries.
Will the United States also remove Huawei from the blacklist?
But Xiaomi is not the only Chinese company on the US blacklist. The other big ban is surely Huawei, but it should be noted that it is not on the same blacklist as the one Xiaomi was on until now.
While Xiaomi has been vetoed by the Ministry of Defense, Huawei is opposed by the Ministry of Commerce, which implies different restrictions. This is why Xiaomi was able to continue using Google services, for example.
Companies blacklisted by the Department of Commerce cannot do business of any kind and cannot have any relationship with US companies. Xiaomi was only prohibited from having investors from the North American country.
However, the decision of the judge, first, and the Biden government, later, opens the door to hope for a company like Huawei that could finally get off the infamous blacklist. It should be remembered that Biden has already assured that he wants to re-establish a strategic relationship with China.
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