Smartphone maker Xiaomi officially not part of Chinese army any more – US

By Elles Houweling

Xiaomi, the Chinese smartphone company caught in the crossfire of the US-China trade war, has officially been removed from the White House blacklist. On Wednesday, the US courts announced that it had cleared its designation as a Communist Chinese Military Company (CCMC).

“The US District Court for the District of Columbia issued a final order vacating the US Department of Defense’s designation of the company as a CCMC,” the company said in a statement to the Hong Kong bourse.

“The company reiterates that it is an open, transparent, publicly traded, independently operated and managed corporation,” Xiaomi’s chairman Lei Jun added in the statement.

The smartphone maker sued the US government in February after it was blacklisted. One month later, the DC court granted Xiaomi a preliminary injunction allowing it to continue sales of its product in the US.

Earlier this month, Xiaomi declared that it had won the lawsuit, after which the Department of Defense (DoD) announced that it would remove the company from its blacklist. The court’s ruling marks a significant victory for the Chinese smartphone brand, as the relationship between Washington and Beijing remains tense.

In recent times, several Chinese telcos have been blacklisted by the US government using various different mechanisms. Companies that remain under restrictions include Huawei Technologies, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology and Dahua Technology.

Following the news, Xiaomi’s share prices further rose on Wednesday, closing at 28.15 Hong Kong dollars, a 1.44% increase.

According to GlobalData’s thematic analysis, Xiaomi is one of the leading players in China’s telecoms network. It is also the world’s third-largest smartphone maker after Samsung and Apple.

The US acceptance that Xiaomi is not affiliated with the army is an excellent example of anti-nominative determinism, as Jun’s name means “military” in Chinese.