China's Xiaomi says US has formally lifted securities ban, pledges 'transparency'

China’s multinational electronics company, Xiaomi Corp. said on May 26 that a United States court has removed the firm’s designation as a Communist Chinese Military Company (CCMC) and subsequently lifted all the restrictions on Americans buying or acquiring its stock. In a statement, the smartphone maker said in a filing to Hong Kong bourse that the order was made on May 25 and, “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.”

Xiaomi Chairman Lei Jun said in the statement, “The company is grateful for the trust and support of all its global users, partners, employees and shareholders. The company reiterates that it is an open, transparent, publicly-traded, independently operated and managed corporation.”

“The company will continue to prove reliable consumer prices to let everyone in the world enjoy a better life through innovative technology,” he added. The court filing showed earlier in May that the United States Defense Department would remove Xiaomi from the US government’s blacklist. This move also marks a reversal by US President Joe Biden’s administration of a step taken by his predecessor Donald Trump’s government against China just days before leaving the White House. 

China calls it ‘beneficial'

China’s commerce ministry on May 13 welcomed the removal of Xiaomi Corp. from the US government’s blacklist. As per the Associated Press, Gao Feng, spokesperson for China’s Ministry of Commerce, said at a news briefing, “China has always believed that removing sanctions and restrictions and stopping suppression of Chinese companies will benefit China, the United States, and the world.” In January this year, the company was added to the list by the Trump administration and accused of linking to China’s army posing a national security threat in the United States. 

At the time, Xiaomi’s spokesperson had said that it was monitoring the issue closely. Trump administration had placed several China-based companies on trade blacklist out of security threat including technology companies such as drone maker DJI and telecommunications equipment supplier Huawei who have categorically denied any connection or exchange of information with Chinese authorities.

IMAGE: AP