With Huawei’s dilemma worsening, some Chinese companies may be looking to their future. But again, not all tech giants are created equal. Some of Huawei’s methods have been questionable, while other Chinese brands are doing things the right way. Along with Huawei, ZTE is banned and cannot do business with US companies. In early January, Xiaomi was added to the US investment ban blacklist, made a week before Trump’s presidency ended.
The addition of Xiaomi to the US investment ban blacklist led the Chinese company to file a lawsuit against the US Defense.Now we learn that the government has agreed to remove Xiaomi from the blacklist.
This is good news for Xiaomi. He once said that it is “It is not owned or controlled or otherwise affiliated with the Chinese government or military, nor is it owned or controlled by any entity affiliated with the Chinese defense industrial base.” This means that Xiaomi can continue to do business freely in the country.
The blacklist was intended to restrict American investment in Xiaomi. That is not happening because the measure was overturned after a lawsuit was filed against the government. The US Department of Defense and Xiaomi agreed to go ahead.
Xiaomi has yet to release a comment or statement, but the presentation read: “The Parties agreed on a way forward that would resolve this dispute without the need for a contested briefing.” Specific terms and they have yet to be finalized at the end of this month.
With Huawei almost out of the picture, falling from the Top 5 in the world rankings when it comes to smartphones, Xiaomi has risen to third place after Samsung and Huawei. It has returned as the leading mobile OEM in China several years after Huawei surpassed the brand. Huawei’s situation is not going to change anytime soon. Xiaomi and other Chinese companies can take advantage of that, but still with caution.