The US Department of Defense announced a few days ago that it would remove Xiaomi from the blacklist set by the Trump administration. Xiaomi’s placement on that blacklist was one of Donald Trump’s final thunderbolts before he left White House official. This is a real political turnaround run by Joe Biden. The new US president sends a strong message to the world and to China.
Biden unravels Trump’s actions
In early 2021, Donald Trump estimated that Xiaomi and nine other Chinese companies, including the Commercial Aircraft Corporation of China (COMAC), could pose a risk to the national security of the United States. Most importantly, it was an opportunity for President Trump to put pressure on the Chinese economy one last time before leaving. A total of 86 companies had to be blacklisted, including 69 Chinese companies. For businesses, appearing on this list means they are can no longer sell their products to US companieswhich can lead to dramatic consequences.
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Only now, now it’s Joe Biden in charge. His defense minister has just announced that Xiaomi will no longer appear on this blacklist. Reuters was able to see the court document mentioning this suspension. It can be read that the ministry decides to put an end to this a brief and controversial spit between Chinese society and Washington. On the news of this exciting news, the company’s shares in Hong Kong rose more than 6%. It was time Xiaomi’s share price had fallen 20% since January.
Xiaomi even filed a lawsuit against the U.S. government
According to the old government, Xiaomi had ties to the Chinese military. This apparently didn’t please the Chinese company, which had decided to go on the offensive by filing a lawsuit against the US government. For the company, that decision was simply illegal and unconstitutional. Xiaomi has always denied any connection with the Chinese military. Other Chinese companies on the same list are considering similar lawsuits against the US government. It is clear that Trump had made the fight against Beijing’s rise to power a formidable weapon in his political strategy.
According to Professor Doug Fuller, who follows the news of the trade war between the United States and China has confirmed for several years that: “There was no doubt that the Biden administration would make efforts to correct the excesses of Trump’s China policy, especially at the end of his term in office. I think this is a sign that Biden is going to be a little softer. To say that it was Xiaomi. ” A Chinese military company has always been ridiculous. “.