On January 15, the United States Department of Defense announced the process to include Xiaomi along with other companies on its blacklist. This black list prohibits Americans from investing in the companies that are on it. Xiaomi appealed the decision and now, two months later, an American judge has agreed with him to suspend Xiaomi blockade.
Citing security concerns, the Trump government in one of its last decisions before leaving power requested the inclusion of Xiaomi on this list. The reason? Suspicions that he collaborated and had links with the Chinese army. Keep in mind that this is a different list from the one Huawei is on.
“The court is somewhat skeptical” on Xiaomi blockade
These are the words that the judge has commented on Xiaomi blockade in the United States. According to the judge, he does not believe that strong national security interests are really involved. Hence, it has decided to temporarily block Xiaomi’s inclusion process on the Pentagon’s blacklist.
Xiaomi appealed last January the decision of the United States Government, claiming that it would suffer “extreme and irreversible damage” to its business and reputation if it entered the list. Speaking to Technoeager, a Xiaomi spokesperson indicated that Xiaomi is a company that “is not controlled by or affiliated with the Chinese army, and is not a” Chinese Communist Military Company.”
The judge seems to have agreed with him, affirming that the United States did not show convincing evidence that Xiaomi collaborated with the Chinese army. The evidence shown by the Pentagon was an award that the Xiaomi founder received in 2019 from the Government of China. He also highlighted the investments in 5G and telecommunications that Xiaomi is making lately.
As Xiaomi has expressed, they are satisfied with the judge’s decision and say that they will seek a permanent elimination of the process of inclusion in said list. It has been luckier than Huawei, which has not managed to lift the ban it has from the United States. Others such as TikTok or WeChat have indeed avoided the prohibitions that the United States tried to impose on them.