Your shareprice can go up or down 10% on a whim. One month (say, January 2021) you can be, in the eyes of an outgoing US President, very bad, and four months later and many thousands of dollars in legal fees later, you’re OK. Such is the merry-go-round of the US Defense Department’s “Communist Chinese military companies” (CMCC) blacklist and the “deeply flawed” process for putting companies on it.
Having put Xiaomi on the CMCC list on 14 January 2021, the US Department of Defense has now agreed in court filings to remove it.
On that day, the Department of Defense issued its “Tranche 5” list of companies which were now effectively banned, and this list included Xiaomi. Listing Xiaomi in this way would have prohibited US persons from buying or owning Xiaomi’s publicly traded stock.
Xiaomi appealed saying the classification was unlawful and unconstitutional and on 12 March 2021, Judge Rudolph Contreras at the US District Court for the District of Columbia (in Xiaomi Corporation v US Department of Defense) granted an injunction requested by Xiaomi to stop the US Department of Defense putting the 14 January declaration into effect.
On 11 May, Xiaomi and the US Department of Defense filed a joint status report regarding the litigation wherein the defendants (the US DoD) agreed to vacate the January 14 designation of Xiaomi as a CMCC. The court confirmed this in an order on 20 May 2021.