In recent months, Xiaomi hasn’t had an easy time. The USA added it to its blacklist of companies, just like it did a few months earlier with Huawei. After months of back-and-forth, both sides reached a mutual agreement.
Victory for Xiaomi
The situation started improving at the beginning of this year, when Xiaomi sued the US government and asked for the investment blockade to be lifted. That happened on 13. March, when the judge ordered it to be removed.
According to the latest report, both sides have reached a peace agreement that would prevent Xiaomi from being added to the US blacklist. You could say Xiaomi won its fight with the USA and proved that it isn’t under the control of the Chinese government or the Chinese army.
Impact of the investment blockade
By placing Xiaomi on the blacklist of US military companies, the value of the company’s shares fell by as much as 30 %. This caused significant financial losses for investors. The situation should improve only from here.
Xiaomi’s lawsuit against the US government shows that the company isn’t afraid and is fully open to proving its innocence—which it also did. In the end, this story ended happily: the company didn’t end up on Huawei’s list, which is still on the US blacklist. That’s cost Huawei the fact that it can’t use Google services in its smartphones, which has deterred many users, and its smartphone sales continue to drop sharply.
For now, Xiaomi is safe. Its shares should start growing again slowly, and it can once again fully focus on developing exciting devices with a great price/performance ratio. Those are exactly the things we love Xiaomi for.
What’s your opinion on this case? Do you think the USA is deliberately discrediting Chinese companies and thereby getting rid of competition? Let us know your thoughts in the discussion below the article. Follow XiaomiPlanet, subscribe to news updates, and don’t forget to join our Facebook group, where we build an active Xiaomi community.
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