• - Xiaomi removed from US Department of Defense blacklist

    Xiaomi removed from US Department of Defense blacklist
    19 Days, 19 Hours ago

    Tags:  USA  -  China  -  Xiaomi

    In the last days of his tenure in the White House, former US President Donald Trump barred investment and securities companies from working with Xiaomi and several other Chinese companies; The move was prompted by the companies' dependence on the Chinese government, prompting Xiaomi's reaction. The company filed a lawsuit against the US Department of Defense and the Treasury on the last day of January 2021, and recently in mid-March 2021, a federal judge in Washington barred the US Department of Defense from restricting its investment in Xiaomi. Bloomberg now announced on Wednesday, May 12, 2021 that Xiaomi has been completely removed from the US government's blacklist. Xiaomi removed from US Department of Defense blacklist

    Report by Bloomberg, Xiaomi and Government The United States has reached an agreement to drop the issue of Xiaomi being blacklisted by the Trump administration, which could have limited American investment in the Chinese smartphone maker. Trump's move to blacklist Xiaomi's exclusion from the stock market and removal from the global benchmark index Has declared it appropriate. Xiaomi has not yet commented on the matter, and Pentagon officials have not yet issued a statement. "The parties have agreed on a way forward that will resolve the case without the need for a briefing," the court said in a statement. The announcement did not elaborate on the possibility of blacklisting, but noted that the parties to the dispute would negotiate specific terms and submit separate joint proposals before May 20.

    The news was met with a positive response from the market, and while in January, with the announcement of Xiaomi being blacklisted, the company saw a 12% drop in its share, now on Wednesday on the Hong Kong Stock Exchange, these shares increased by 6.7% Has found. Xiaomi's removal from the list, according to experts, will lead to a positive market reaction to the company and will strengthen the shares of this group (which has decreased by 15% since the announcement of this issue). . Xiaomi has a long list of other consumer goods ranging from robotic vacuum cleaners to electric bicycles, from air purifiers to air purifiers. Refrigerators and washing machines can also be seen being launched more than 10 years ago by a Chinese billionaire entrepreneur named Lei Jun, and Qualcomm is one of its first investors. With this record, Xiaomi was considered an unexpected target for the Trump administration to be blacklisted by the Ministry of Defense, but this situation in the last days of Trump with the wide-ranging disputes between the US and China that Huawei has faced many problems over the past two years. (Although at a lower level) and now with the resolution of this problem, we can be very hopeful that the company will continue to grow.

    Source: Bloomberg

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