Hong Kong: China’s Ministry of Commerce welcomes Xiaomi’s removal from the US government’s blacklist, which is the second day after the US lifted the ban on US investment in smartphone manufacturers imposed by former President Donald Trump.
“China has always believed that removing sanctions and restrictions and stopping suppression of Chinese companies will benefit China, the United States, and the world,” Gao Feng, spokesperson for China’s Ministry of Commerce, said at a news briefing Thursday.
Xiaomi, a Beijing-based company known for its value-for-money smartphones and smart devices, was added to a Defense Department blacklist in January this year in the last few days of the Trump administration, which accused it of links to China’s military.
U.S. investors were ordered to divest their stakes held in Xiaomi by November.
In response, Xiaomi sued the U.S. government over the ban, demanding to be removed from the list. It denies having any links with China’s People’s Liberation Army.
According to media reports, on Wednesday, a US court document stated that after the two parties reached an agreement, the US Department of Defense would remove Xiaomi from Xiaomi.
A Xiaomi spokesperson said that the company is paying close attention to the issue.
The company’s Hong Kong-listed stock fell nearly 2.9% on Thursday. The stock rose 6% a day ago after news that the company had been removed from the US blacklist.
Under the Trump administration, Chinese technology companies such as drone maker DJI and telecommunications equipment supplier Huawei were put on a trade blacklist out of concerns such companies might be security risks.
U.S. companies and individuals are banned from dealing with companies on such lists or in some cases must seek special permission in advance.
Although companies such as Huawei and DJI have denied sending any data to China, Chinese hawks have stated that these companies may be obliged to assist in espionage activities in accordance with the provisions of China’s National Intelligence Law.