US agrees to remove Xiaomi from trade blacklist after lawsuit
- The agreement comes after a US court in March sided with Xiaomi in its lawsuit to overturn a Trump administration blacklisting
- It marks a rare victory for China’s technology giants caught in the crosshairs of a trade war between Washington and Beijing
Hong Kong-listed Xiaomi did not immediately reply to a request for comment.
Pentagon representatives were not immediately available for comment after normal hours.
Shares of Xiaomi rallied as much as 6.7 per cent in Hong Kong trading on Wednesday.
“The parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing,” according to the filing. The parties involved are negotiating over specific terms and will file a separate joint proposal before May 20.
Xiaomi, which makes robot vacuum cleaners, electric bikes and wearable devices alongside smartphones, had been an unexpected target for the Trump administration.
US District Judge Rudolph Contreras said at the time that Xiaomi was likely to win a full reversal of the ban as the litigation unfolds and issued an initial injunction to prevent the company from suffering “irreparable harm”.
The agreement marks a rare victory for China’s technology giants caught in the crosshairs of the US government, as the two nations clashed over issues ranging from trade to human rights and Hong Kong’s rule.
Trump had signed an order in November barring American investment in Chinese firms owned or controlled by the military in a bid to pressure Beijing over what the US has described as abusive business practices. The order against Xiaomi, alongside a handful of other Chinese firms, was issued in the waning days of his administration.