Xiaomi US blacklist Archives - Gizmochina

Xiaomi has officially been removed from the US trade blacklist

Sean — Wed, 26 May 2021 08:17:14 +0000

Earlier this week, a US court issued a ruling that had Xiaomi removed from the US sanction list, lifting the Department of Defense’s designation of CCMC or a Communist Chinese Military Company.

pic.twitter.com/IcNoW8LAWR

— Xiaomi (@Xiaomi) May 26, 2021

In other words, the Chinese tech giant has been removed from the government’s trade blacklist, which had placed restrictions on the buying or holding of stocks by any person in the US. The brand also shared that “The US District Court for the District of Columbia issued a final order vacating the US Department of Defense’s designation of the company as a CCMC.” This order was made back on Tuesday (25th May 2021).

The brand’s founder and CEO Lei Jun also added that “The Company is grateful for the trust and support of its global users, partners, employees, and shareholders. The Company reiterates that it is an open, transparent, publicly traded, independently operated and managed corporation.” For those unaware, the company had been facing pressure from the US government, similar to Huawei, which has faced a trade ban that has even disrupted its supply chain.

Notably, the ruling also arrives as a reversal of the previous President’s, Donald Trump, final jabs against Beijing by the Biden administration. The court filing adds that the smartphone maker and the US government will now agree to resolve their ongoing litigation and bring an end to this controversial feud between Xiaomi and Washington.

Xiaomi raises investment into chips amid increasing US pressure

Sean — Mon, 05 Apr 2021 08:12:51 +0000

Xiaomi has been ramping up its investment into chips amid increasing US pressures. This is a part of China’s efforts to lower dependency on foreign technology after the US had targeted Huawei Technologies.

According to a NikkeiAsia report, the Chinese tech giant raised its stakes by a large amount in at least 34 China based chip related firms from 2019 till now. Furthermore, the company also added stakes in about 25 other tech hardware based firms that were not related to semiconductors as well. At the moment, the smartphone manufacturer is targeting chip develops, chip equipment makers, startups, and even advanced displays, camera lenses and automation and, precision equipment.

Notably, these investments made by Xiaomi are in line with China’s road map for building a more competitive tech manufacturing supply chain. In other words, reducing its reliance on foreign advanced technology and strengthening its own tech industry. The company is currently a rapidly growing firm from China, with its global smartphone market share rivaling other giants like Apple. Huawei had been the target of various US trade restrictions and even Xiaomi has been facing similar accusations of alleged ties to Chinese military.

Xiaomi’s Surge C1 Chipset

Xiaomi Founder, Lei Jun stated that “It has been seven years since Xiaomi invested in chips. … [The C1] is only a small step in Xiaomi’s chip progress, but it marks a milestone for our image processing capability. The road to [Xiaomi’s chip ambition] is long and full of challenges, but we have the patience and perseverance to make it.” Other Chinese companies have also been making similar efforts in boosting chip development since last year, when the US cut off Huawei’s access to its primary chip supplier, TSMC.

Xiaomi gets court injunction stopping US blacklisting

Jeet — Mon, 15 Mar 2021 08:06:34 +0000

A few weeks ago, the Defence Depart of the United States under the Donald Trump administration had tagged Xiaomi as a company with ties to the Chinese military, putting financial restrictions on the Chinese firm, which were scheduled to go into effect next week.

However, before the restrictions could go into effect, a U.S. District Jude has put a temporary halt on the ban. The judge sided with Xiaomi in a lawsuit that argues that the move by the United States government was “arbitrary and capricious” and deprives the company of its due process rights.

In mid-January, Xiaomi and eight other Chinese companies were added to a list by the Defence Department that requires Americans to sell their interests in the firms. Soon after that, Xiaomi filed a complaint in a Washington court seeking to be removed from the list, calling its inclusion “unlawful and unconstitutional” and arguing it was not controlled by the People’s Liberation Army.

Xiaomi is the world’s third-largest smartphone manufacturer by volume. The company is likely to win a full reversal of the ban as the litigation unfolds. After the ban was announced, the company faced the prospect of being delisted from U.S. exchanges and deleted from global benchmark indexes.

In the ruling, U.S. District Judge Rudolph Contreras in Washington, D.C., said that the court “concludes that defendants have not made the case that the national security interests at stake here are compelling.”

In a statement, a Xiaomi spokesperson welcomed the ruling and said that the designation of Xiaomi as a Chinese military company “arbitrary and capricious.” It also indicates that Xiaomi plans to continue to request that the court declare the designation unlawful and to permanently remove the designation.

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2019 award to Xiaomi’s founder was behind the recent US blacklist – WSJ report

Jed John Ikoba — Sun, 07 Mar 2021 18:04:10 +0000

Chinese smartphone brand Xiaomi, until January 2021, had seen rising interest and growth, as it continued to try to fill the void created by the US government’s shut-out of Huawei on fears that it has a strong connection with the Chinese military and could be carrying out espionage activities on their behalf. The brand had grown rapidly in the aftermath of Huawei’s blacklisting to become the third-largest smartphone manufacturer in the world.

However, it got a rude shock when the then outgoing government of President Donald Trump imposed a ban on the company together with seven other Chinese companies on the accusation of being owned by the Chinese military or having very strong ties with the Chinese communist government.

A Wall Street Journal report has now revealed that the reason for the blacklisting of Xiaomi was that its founder Lei Jun was the recipient of a 2019 award by MIIT titled: Outstanding Builder of Socialism with Chinese Characteristics. The award was well received by the company, as it was well highlighted in the biography of its founder and in the corresponding annual report of the company.

In response to the blacklist by the US government, Xiaomi had put out a public statement reaffirming the claim that it has no links whatsoever with the Chinese government, neither is the company owned by the Chinese military establishment. Xiaomi stressed that the company had continued to abide by all legal protocols in their business operations and had not been found to run foul of these by the US government. It insisted that it will pursue all legal avenues to seek redress for the unfair categorization and blacklisting by the US government. The company’s shares had experienced substantial declines since the January decision, shedding a quarter of its shares (25%) as of this week, and closed at $15.34 per share.

Xiaomi had also filed a lawsuit challenging the blacklisting in the US, and an extended legal struggle has already ensued with the battle shifting to the courts. However, it remains to be seen the amount of evidence the US Defense Department would be willing to make public in support of the blacklist decision.