US removes Xiaomi from government blacklist, parties to resolve litigation

The US department of Defense will remove Chinese smartphone maker Xiaomi Corp from a government blacklist, a court filing showed.

The filing stated that the two parties would agree to resolve their ongoing litigation without further contest, bringing to an end a brief and controversial spat between the hardware company and Washington.

Xiaomi did not immediately respond to a Reuters request for comment.

Earlier this year the US Department of Defense, under the Trump administration, designated the firm as a company with ties to China’s military and placed it on a list that would restrict US investment in the company.

Xiaomi quickly responded by filing a lawsuit against the US government, calling its placement “unlawful and unconstitutional” and denying any ties to China’s military.

In March, under the new Biden administration, a federal judge temporarily blocked enforcement of the blacklisting.

Shares in Xiaomi rose over 6% in Hong Kong as news of the decision spread.