US government agrees to lift ban on Xiaomi

The agreement arrives after Xiaomi filed a lawsuit earlier this year.

Valentyn Ogirenko / Reuters

The US government has agreed to remove Xiaomi from a Trump administration blocklist after the company filed a lawsuit earlier this year, according to court documents seen by Bloomberg. Xiaomi was added to a US military list of alleged Chinese military companies in January, which would have blocked American investment in the firm.

"The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing," the filing reportedly states. Other details are scant, but both parties will file another joint proposal before May 20th, according to Bloomberg.

Late in Trump's term, the US Department of Defense declared Xiaomi to be Chinese military controlled firm and part of China's "military-civil fusion strategy." Xiaomi fired back with the lawsuit just two weeks later, stating that its two co-founders owned 75 percent of voting rights and that there were no military links to ownership. It added that three of its most prominent shareholders were US investment groups.

In March, a US court temporarily halted the ban, saying that Xiaomi was likely to win a full reversal. It also issued an injunction to prevent it from suffering "irreparable harm." So far, the Pentagon, Xiaomi and Chinese authorities have yet to comment on the development.