Beijing, May 12 (EFE).- Chinese technology company Xiaomi said Wednesday that it had reached an agreement with the United States Defense Department to remove it from the black list of companies with alleged links with the Chinese Army.
“The US Department of Defense has reached a peaceful agreement with Xiaomi on this litigation and has removed it from the list of ‘Chinese communist military companies,'” the Chinese manufacturer said in a statement sent to the Hong Kong Stock Exchange, where it is listed.
The technology company recovered in the Hong Kong stock market and ended the session with gains of 6.1 percent.
In March, a US federal judge decided to suspend the ban on investing in this company, considering the argument about the links between the Armed Forces and the Chinese government “deeply flawed.”
The magistrate considered that the decision, imposed by former President Donald Trump administration in January linking Xiaomi with the Chinese Armed Forces, was not properly founded.
The Defense Department, which decided not to appeal the ruling, had based these alleged links on the delivery to Xiaomi of a Chinese state award. But the judge considered it was not sufficient reason, since hundreds of companies have received the award and it is becoming the standard in the technology sector.
The Defense Department’s intention was “to counteract Beijing’s military-civil fusion strategy,” which allegedly seeks to modernize its military capabilities with technology and knowledge gained by “companies, universities and research programs that appear to be civilian entities.”
Xiaomi is one of the victims of the commercial and technological war between the US and China for the strategic sectors of semiconductors or telecommunications at a global level.
The giant Huawei was the main focus in Trump’s attempts to limit the influence of Chinese tech in the US and was subject to bans to trade and operate there, especially in relation to 5G mobile technology.
The administration of Democrat President Joe Biden has remained in the background in this legal battle and has suggested that it will not move until it negotiates the framework of relations with China with its allies. EFE