- In January, the administration under former President Donald Trump designated Xiaomi as one of several "Communist Chinese military companies" or CCMC.
- That restricting American investors from buying shares or related securities of any companies given this designation.
- On Tuesday, the U.S. Department of Defense agreed to remove the designation from Xiaomi.
GUANGZHOU, China — The U.S. has agreed to remove Xiaomi from a blacklist that would have barred Americans from investing in the Chinese smartphone maker.
Shares of Chinese tech giant Xiaomi rallied as much as 6.5% after the news, before paring some gains.
In January, the administration under former President Donald Trump designated Xiaomi as one of several "Communist Chinese military companies" or CCMC.
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This meant the world's third-largest smartphone maker was subject to a November executive order restricting American investors from buying shares or related securities of any companies given this designation by the U.S. Department of Defense (DOD).
Xiaomi brought a legal challenge against the U.S. Department of Defense.
In March, a U.S. court granted Xiaomi a preliminary injunction against the Trump-era order, saying the company would "suffer irreparable harm in the form of serious reputational and unrecoverable economic injuries."
Money Report
And on Tuesday, the DOD agreed that a "final order vacating" Xiaomi's designation as a CCMC "would be appropriate," according to a court filing.
Xiaomi and the DOD will "negotiate over the specific terms of the order" and provide the court with a "joint proposed order" on or before May 20.