U.S. Removes Sanctions Against Xiaomi After Manufacturer’s Lawsuit

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Xiaomi: The United States agreed to remove Xiaomi from the list of sanctions that blocked investments in the Chinese technology company. This undoes the measure taken in the last week of the Donald Trump administration.

In January of this year, the US Department of Defense named Xiaomi as a “Chinese Communist Military Company”. A sanction that forced any American investor to cut ties with the manufacturer by November 2021.

After the Chinese manufacturer sued the US government over the appointment, a district judge issued an injunction to block inclusion on the list. According to him, the Trump administration’s act was “arbitrary and capricious”.

The USA did not appeal against the injunction issued. Likewise, Xiaomi representatives declared to The Verge that the manufacturer “does not belong, is not controlled or affiliated with the military and, above all, is not a Communist Company in China”.

To close the case, Xiaomi recently presented a joint status document with the Department of Defense saying that the parties “agreed to follow a path that would resolve the dispute without the need for a disputed statement”.

Apparently resolved matter

According to the document filed by the court, Xiaomi and the Department of Defense “agreed that a final order for the withdrawal of the designated term on January 14, 2021” would be appropriate.

Now, the parties are negotiating a request to file the sanction with the agency. Then, a joint proposal is expected before May 20, 2021.

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