The Trump administration had passed an executive order in November 2020 banning Chinese companies from further U.S. investment. They were blacklisted as the ‘Communist Chinese Military Companies ‘. Chinese smartphone company Xiaomi too was one of them and was added to the blacklist in January of 2021. The company denied having any links to the Chinese military. Along with this company another Chinese smartphone manufacturer, Huawei was also included in the blacklist. However, the new U.S. Government has decided to remove Xiamo from the blacklist.
As a result of the banning, Xiaomi had to face certain consequences. It had to sell stocks coming under pressure from its U.S investors. It was restricted from any investments with any U.S. companies. Though all these restrictions did not stop Xiaomi from releasing interesting new tech. Just after the order went into effect in January, the company introduced Mi Charge Technology. It can wirelessly charge a device from several meters away. Xiaomi’s first foldable smartphone the Mi Mix Fold was also recently unveiled.
Why Is The Ban Being Removed From Xiaomi?
Last year, then-president Donald Trump had signed the order to reduce U.S. investments in Chinese companies. As a part of his China policy, it was done with the notion that these companies supported the Chinese military. The ban led Huawei to shift the manufacturing of its own chips to Shanghai. However, Xiaomi remained firm with its denial of any links to the Chinese military. It also affirmed that it does follow all proper rules and regulations. Therefore there was no solid reason to blacklist Xiaomi. It has always been just a smartphone company that has been manufacturing products for commercial use and for the individual consumer.
As reported by Reuters, the Department of Defense of Biden Government came up with a court filing. It has decided to take Xiaomi off the government blacklist and end ongoing prosecution. It was decided in March by a federal judge. The current administration is upholding the federal judge’s decision. After Xiaomi was banned, it had to face an approximately 20 percent drop in its share. Though most recent news, have shown a rise of about 6 percent.
