Xiaomi Corp and the US government have reached an agreement to set aside a Trump administration blacklisting that could have restricted American investment in the Chinese smartphone maker.
The Beijing-based smartphone giant had sued the government earlier this year, after the US Defence Department under former President Donald Trump issued an order designating the firm as a Communist Chinese military company, which would have led to a delisting from US exchanges and deletion from global benchmark indexes.
The US Defence Department has now agreed that a final order vacating the designation “would be appropriate”, according to a filing to the US courts on Tuesday.
Xiaomi Corp chief executive Lei Jun co-founded the Chinese smartphone giant in Beijing 11 years ago. Photo: Imaginechina via ZUMA Press/dpa
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.
