As seen in a recent court filing, The United States of America Defense Department will take out phone maker Xiaomi Corp from a government blacklist. This marks a reversal of one of Ex-President Donald Trump’s policies by the Biden administration.
The court filing that said Xiaomi Corp will be taken out of the government blacklist, also mentioned that the U.S. Government and Xiaomi Corp have agreed to bring an end to the ongoing litigation.
Xiaomi Corp is a Chinese multinational company founded in 2010. The company produces electronic products ranging from smartphones, mobile apps, laptops, fitness bands, smartwatches, smart shoes, bags, etc. The company is headquartered in Beijing and is one of the most famous electronics makers globally.
“The Biden administration is deeply concerned about potential U.S. investments in companies linked to the Chinese military and fully committed to keeping up the pressure on such companies”, Emily Horne, a spokeswoman for the White House National Security Council said.
The U.S. Defense Department has earlier blacklisted the company for allegedly having ties to the Chinese military. By blacklisting the company, U.S. investment in the company was restricted. Seven other Chinese companies were blacklisted for the same reason of being tied to the Chinese Government.
Xiaomi Corp didn’t take the Defense Department’s claims lightly. It filed a lawsuit against the U.S. Government. The company denied any ties to the Chinese Government and called its placement on the blacklist “unlawful and unconstitutional”.
On the latest development, a spokesperson from Xiaomi Corp said that the company is watching closely and refused to give any further comments.
In March of this year, a federal judge blocked the enforcement of the blacklisting temporary. According to him, the U.S. Government’s process for including companies in the ban was “deeply flawed”. The judge also suspended an investment ban that another Chinese mapping technology company faced.
The ruling has not been challenged by the Biden administration and the White House National Security Council spokeswoman; Emily Horne cited the ruling saying that “the Trump administration failed to develop a legally sufficient basis for imposing restrictions on the company and compelled this action”.
Other companies placed on the same restrictions as Xiaomi have begun to consider filing the same lawsuit.