The U.S. Defense Department announced on Monday that it has agreed to remove Xiaomi Corp. from its blacklisted companies, reversing the move that the previous Trump administration made to allow investments to be established again between the country and the Chinese smartphone maker.
Earlier this year, Xiaomi has filed a lawsuit against the U.S. government after the U.S. Defense Department issued an order that labeled the Beijing-based tech giant as one of the several “Communist Chinese military companies” or CCMC. This move was made during the leadership of former U.S. president Donald Trump.
This order forced the Chinese smartphone giant to be subjected to the Trump administration’s November executive order, delisting the firm from US exchanges and prohibiting American businesses and investors from buying shares or other related securities of Xiaomi.
According to the court filing on Tuesday, Pentagon has decided to agree that a “final order vacating” Xiaomi’s designation as a CCMC “would be appropriate.”
The stocks of the Chinese tech giant rallied as much as 6.7 percent in Hong Kong trading on Wednesday afternoon following the agreement’s disclosure.
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