The United States has removed Chinese tech company Xiaomi from one of its trade “black lists” after a court ordered it to cease being designated as a “Chinese Communist Armed Forces company,” the Treasury Department said on Thursday in a statement.
In a brief note, the Treasury explained that Xiaomi was so designated by the Pentagon last January 14, in the last days of former President Donald Trump’s term in office (2017-2021), which led to its inclusion on a commercial black list.
However, following a ruling by a federal court in the District of Columbia last May 25, the Chinese company will be removed from that list, which prohibits Americans from conducting transactions with the firms on it.
In February, Xiaomi sued the U.S. government for its inclusion on the black list and in March the U.S. court granted it a preliminary exemption pending its final ruling.
Xiaomi is one of the leading global handset manufacturers and its main competitor in the Chinese market, Huawei, is still fighting its blacklisting.
Trump signed an executive order in November, which went into effect last January, penalizing American investments in a number of Chinese companies, including Xioami and Huawei, for supporting the efforts of Beijing’s intelligence, military and security apparatus.
This listing is different from the Commerce Department’s “black list,” which banned Huawei and other Chinese tech companies’ ties to their American suppliers because of possible threats to U.S. national security.