Like most Chinese technology companies, Xiaomi began to face US government sanctions in recent years. But now the company has achieved an important victory in court, which has removed the brand from the blacklist of foreign companies.
US District Judge Rudolph Contreras ruled in favor of Xiaomi after the Chinese company claimed that the blockade was unconstitutional and was tarnishing the company's brand worldwide. The case is still ongoing, but the company has already won the first case. In the decision, the judge states that, by adding the cell phone manufacturer to the "blacklist", the government acted in an "arbitrary" manner.
The US authorities' claim for blocking the Xiaomi is that the company was acting at the behest of the Chinese Communist Party. This happened in January, still under Donald Trump's administration, but was maintained by Joe Biden's government.
- Xiaomi (@Xiaomi) March 14, 2021
Black list
By being part of the “blacklisted”, no American company or individual can make investments in Xiaomi. This includes sponsors, partners such as Qualcomm and limits the giant's movements in the country.
The Chinese company has already seen results from the measure. This Monday (15), the Chinese company's shares soared 10% on the Hong Kong stock exchange after the favorable decision. “The company reiterates that it is publicly traded and operates independently,” declared the company. “Xiaomi will continue to fight for the court to permanently remove the designation,” he added, referring to the fact that the process has not yet been completely finalized.
The decision left an expectation that the US justice system may follow suit with Xiaomi and remove the blockade against it as well. Chinese Huawei. But the second case is a little different. Although it is also part of the “blacklist”, the restrictions against Huawei are much more severe and the fact that the company is in the running for the implementation of 5G around the world also weighs heavily. The change in the country's presidency brought hope to the company, but there is no any sign that the Biden administration will change its stance in this area.