Xiaomi and the US government bury the hatchet, settle investment ban
Enlarge (credit: Pavlo Gonchar / Getty Images)
Xiaomi is no longer on the government's blocklist, according to a new court filing spotted by Reuters. On its way out the door on January 14, the Trump administration's Department of Defense declared Xiaomi a "Communist Chinese military company," but now with Joe Biden in charge, Xiaomi and the US government are burying the hatchet. According to Reuters, "The filing stated that the two parties would agree to resolve their ongoing litigation without further contest."
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Xiaomi called the ban "unconstitutional" and said it was "factually incorrect and has deprived the company of legal due process." The company added that the investment restrictions would cause "immediate and irreparable harm to Xiaomi." The first of the restrictions would have kicked in on March 15, 2021, (a ban on buying new shares of Xiaomi), but that was temporarily blocked by a federal judge, who called the government's ban process "deeply flawed." Eventually, the ban would have forced US investors to divest themselves of Xiaomi shares, which would have been a big problem for the company. Xiaomi had an IPO in 2018, and today three of the top 10 shareholders are US citizens.
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