Xiaomi Group and the US Department of Defence have issued a Joint Status Report related to the lawsuit filed by the Chinese company. In the documents, the US government has acknowledged procedural justice issues on the military list and is willing to settle the matter with the Xiaomi Group and remove the company from the military blacklist.
For those who are unaware, in January this year, the United States government had included nine Chinese companies, including Xiaomi, on the military blacklist citing close ties to the Chinese military, to prevent American investors to invest in those companies.
Soon after that, Xiaomi filed a lawsuit against the US government and District Judge Rudolph Contreras put a temporary halt to the ban, siding with Xiaomi in a lawsuit that argued that the move was “arbitrary and capricious” and deprived the company of its due process rights. The judge blocked the Defense Department from restricting U.S. investment in the Chinese smartphone manufacturer Xiaomi Corp.
After the ban was announced, the company faced the prospect of being delisted from U.S. exchanges and deleted from global benchmark indexes. However, Xiaomi was likely to win a full reversal of the ban.
Xiaomi is the third-largest smartphone manufacturer in the world by shipments, just behind Samsung and Apple. The initial announcement of the ban on Xiaomi knocked $10 billion off its market share and sent the company’s shares down 9.5 percent in January.
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