US judge removes China’s Xiaomi from Trump-era blacklist – Times of India

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WASHINGTON: A US judge on Friday ordered Chinese smartphone maker Xiaomi temporarily removed from a government blacklist barring American investment in the company.
Six days before Donald Trump left office last year, his administration cemented its trade war legacy against Beijing with a series of announcements targeting Chinese firms including Xiaomi, state oil giant CNOOC, and social media darling TikTok.
Xiaomi was one of nine firms classified by the Pentagon as “Communist Chinese military companies.”
But US District Judge Rudolph Contreras in Washington ruled Friday the departments of defense and treasury “have not made the case that the national security interests at stake here are compelling.”
He issued a preliminary injunction removing Xiaomi from the blacklist and suspending the ban on US investors buying the company’s securities.
In an appeal filed in January against its blacklisting, Xiaomi — which overtook Apple last year to become the world’s third-largest smartphone manufacturer — said Washington’s moves were “incorrect” and had “deprived the company of legal due process.”
Contreras’s decision came the same day US regulators listed Huawei and ZTE among Chinese telecom gear firms deemed a threat to national security, signalling that a hoped-for softening of relations is not on the cards.
Huawei chief and founder Ren Zhengfei last month called for a reset with the United States under President Joe Biden, after the firm was battered by sanctions imposed by Trump’s administration.
The telecoms giant has been at the center of the Sino-American rivalry in recent years, against a backdrop of a trade and technology war between the superpowers.
Washington claims Huawei has close ties to China’s military and that Beijing could use its equipment for espionage — accusations the company denies.

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The ‘real’ reason why the US blacklisted Xiaomi – Times of India

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Former US president Donald Trump did have a thorny relationship with China, especially when it came to trade and technology companies. During the last days of his presidency, Trump and his administration blacklisted Xiaomi for its ‘alleged’ ties with the Chinese military.The US Department of Defence put Xiaomi on the list and the Chinese company came out defiantly denying any such allegation. “The Company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The Company reiterates that it provides products and services for civilian and commercial use. The Company confirms that it is not owned, controlled, or affiliated with the Chinese military, and is not a “Communist Chinese Military Company”.
However, a new report by The Wall Street Journal now reveals the real reason why the US had blacklisted Xiaomi. The US Defence Department cited a legal filing under which an award given to Xiaomi CEO Lei Jun was the main reason for the company being blacklisted. 100 executives — including Lei — were given the “Outstanding Builder of Socialism with Chinese Characteristics” award in 2019.
Now if you are wondering how an award could lead to a rather drastic step then here’s why. The award was given by MIIT, a government agency that looks at China’s technology and industrial policies. According to the report, the agency is responsible for China’s “civil-military fusion” and is responsible for China working with private companies to create tech for the country’s military.
Interestingly, the award given to its CEO is promoted on his biography page on the company’s corporate website. Xiaomi, as per multiple reports, has been using the legal route to get itself removed from the US’ blacklist. The company hasn’t commented on the award being the reason behind its troubles in the US.

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