US removes Xiaomi from government blacklist, parties to resolve litigation

Photo by Xiaomi

The U.S Department of Defense will remove China’s Xiaomi Corp from a government blacklist, a court filing showed, clearing the way for any future American investment in the Beijing-based smartphone maker.

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.

A Xiaomi spokeswoman said the company is watching the latest developments closely, without elaborating. Shares in the company rocketed over 6% in Hong Kong as news of the decision spread.

Department of Defense officials weren’t immediately available for comment after U.S. business hours.

Earlier this year the U.S. Department of Defense, under the Trump administration, 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, under the new Biden administration, a federal judge temporarily blocked enforcement of the blacklisting, citing the U.S. government’s “deeply flawed” process for including it in the ban.

Soon after that victory, Reuters reported that other Chinese firms placed on the same blacklist were considering similar lawsuits.

Xiaomi was among the more high-profile Chinese technology companies that former President Donald Trump targeted for alleged ties to China’s military in the waning days of his administration.

Trump had made countering the rise of Beijing a centerpiece 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.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.