The U.S. Department of Defense will remove China’s Xiaomi from the terrorist list from the government, signaling a court appearance, marking a dramatic change by Biden’s management in one of Donald Trump’s last jokes in Beijing before stepping down.
This includes both parties agreeing to resolve their ongoing cases without competition, ending a short-lived dispute between a hardware company and Washington that has also ended Sino-US relations.
A Xiaomi spokesman said the company was looking at the latest news, without elaborating.
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Shares in the company have hit more than six percent in Hong Kong as news of the decision spreads. The company’s stock price has dropped by nearly 20 percent since it was listed as a terrorist in January in the run-up to the Trump administration.
Department of Defense officials were not immediately available for comment after working hours in the US.
The department has named the company as an ally with Chinese troops and has listed it as reducing its US investment in the company.
Seven other Chinese companies were also placed under similar restrictions.
Xiaomi has continued to attack by filing a lawsuit against the US government, calling his appointment “illegal and unconstitutional” and denied any cooperation with Chinese troops.
Shortly after the victory, Reuters reported that other Chinese firms had been placed on the same list of suspects.
Xiaomi was one of China’s top technology companies that former President Donald Trump has targeted with allegations that they are Chinese soldiers.
Trump has made the opposition to the Beijing revolt a turning point in the economic and foreign policy of his administration.
Xiaomi’s local smartphone competitor Huawei was also banned from exporting in 2019 and was barred from accessing sensitive US-based technology, affecting his ability to create his own chips and source material from foreign vendors.
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The measures have successfully crippled the company’s smartphone divergence.
Later, the U.S. Department of Defense imposed similar restrictions on China’s Semiconductor Manufacturing International Corporation, which is a strong key to China’s national drive to expand its domestic goods sector.
Prof. Doug Fuller, who follows the Chinese semiconductor sector at City University of Hong Kong, says Xiaomi’s victory has been “hanging fruit” for Biden’s management in his efforts to correct Trump’s excessive China policy as his term expires.
“I think it’s a sign that Biden will soften a bit,” he said.
“Calling Xiaomi a Chinese military company has always been ridiculous. For firms tied to legal security issues, or Xinjiang, however, it will be very difficult.”
