Xiaomi seems ready to be deleted from the controversial US market blacklist after the US Department of Defense considered it “appropriate.”
Report from Bloomberg says that the Chinese company smartphone has won a US court appeal over the initial ban, with the US Defense Department accepting the final order that will overturn the decision to block all trade with Xiaomi and its affiliates.
In January, during Trump administration Xiaomi was accused of supposedly linking with the Chinese military, Which led to the initial US trade ban and blacklisting. This followed the high-profile trade bans imposed upon fellow Chinese firm Huawei, which has since crippled the brand over the past 18 months.
According to the report, “The parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing,”
Proceedings seen by Bloomberg reporter suggests the agreement did not yet include any terms for removal. Furthermore, the US Department of Defense and Xiaomi are reportedly negotiating over specific terms and set to file a separate joint proposal before May 20.
Meanwhile, Xiaomi’s move to a US trade blacklist was less restrictive. The OEM has witnessed a huge growth at the expense of Huawei firm in recent years though the trade limitations did not directly affect supply chains. The portfolio of products beyond smartphones and tablets has also likely helped Xiaomi’s growth over the past 24 months.
Even though Xiaomi has a various product portfolio, the company has little to no foothold inside the telecommunications infrastructure area. This has in all likelihood been the base reason that the US trade blacklists and bans had been much less turbulent to Xiaomi’s core business regions.
Chipmaker Qualcomm lately invested in Xiaomi, that can have a long-term aftermath for both company’s. Xiaomi’s entry to US change blacklist could have compelled the chipmaker to diversify any obtained holdings through November 21, 2021.
Elimination of any trade sanctions will be welcomed by means of each parties as Xiaomi’s latest release puts more Qualcomm-powered chips in the hands of many users over the globe.