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The US Has Formally Lifted Securities Ban On It, Says China's Xiaomi


05/26/2021


The US Has Formally Lifted Securities Ban On It, Says China's Xiaomi
The designation of the Chinese firm China's Xiaomi Corp of being a Communist Chinese Military Company (CCMC) as was imposed by the United States administration, was removed by a US court, the company said on Wednesday while also lifting all the restrictions imposed on the company including buying or holding its stock as were imposed as a consequence of such labelling of the company.
 
"The U.S. District Court for the District of Columbia issued a final order vacating the U.S. Department of Defense's designation of the company as a CCMC," the smartphone maker said in a filing to the Hong Kong bourse. It said the court order was passed on Tuesday.
 
"The company reiterates that it is an open, transparent, publicly traded, independently operated and managed corporation," Xiaomi chairman Lei Jun said in the statement.
 
Earlier in May, a court filing had showed that the Xiaomi would be removed from a government blacklist by the US Defense Department. That was a reversal of the Biden administration of the policy taken by the former Donald Trump administration of labelling suspicious firms as a part of the trade war with China.
 
The company and the US government agreed to resolve their on-going litigation and end the labelling of the Chinese company by the Trump administration. 
 
"The Biden Administration is deeply concerned about potential U.S. investments in companies linked the Chinese military and fully committed to keeping up pressure on such companies," Emily Horne, aspokeswoman for the White House National Security Council, had said earlier in May.
 
The Chinese firm was designated such by the former Trump administration over concerns that the company has ties with the Chinese military and therefore restricted all American investments in the company. 
 
Similar restrictions were also imposed on seven other Chinese companies by the former Trump administration.
 
Xiaomi was one of the Chinese companies that decided to fight the Trump order and restrictions by filing a lawsuit against the US government in an American court and had described the Trump order and its inclusion in the Defense Department list as "unlawful and unconstitutional". The company had also denied having any ties with the Chinese military - also the Red Army.
 
A temporary injunction of the Trump order and the blacklisting was issued by a federal judge in March this year on the basis of Xiaomi’s lawsuit. The court had then noted the US government’s "deeply flawed" process for including the Chinese company in the ban list. At the same time, the court had also suspended an investment ban that was imposed on the Chinese mapping technology company Luokung Technology Corp.
 
(Source:www.ndtv.com)


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