The US has officially lifted all restrictions on investors buying or holding Xiaomi securities, the Chinese smartphone giant said in a May 26 announcement on the Hong Kong Stock Exchange.
The announcement said the US District Court for the District of Columbia issued a final ruling lifting the US Department of Defense's designation of Xiaomi as a “Chinese military company”.
Xiaomi and the US Department of Defense issued a joint status report on the lawsuit on May 11.
According to the report, the parties have agreed to a peaceful resolution of the lawsuit. This means that the US government has acknowledged the procedural justice issues on the military list.
In January, the US government announced that it had added nine Chinese companies to its list of companies affiliated with the Chinese military, including Xiaomi.
The smartphone maker subsequently issued an announcement that it sued the US Department of Defense and the US Department of the Treasury in the US District Court for the District of Columbia on January 29.
The two agencies' decisions were procedurally unfair and factually incorrect, and the company asked the court to declare the decision unlawful and vacate it in order to protect the interests of Xiaomi's users, partners, employees and shareholders worldwide, the company said at the time.
Xiaomi had obtained a preliminary injunction from the District Court for the District of Columbia in March to prohibit the entry into force or implementation of the US Department of Defense's executive order listing Xiaomi as a company associated with the Chinese military.
Xiaomi had said at the time that it would continue to ask the court to ultimately rule that the executive order was invalid for Xiaomi.
As of press time, Xiaomi shares traded in Hong Kong were up about 1 percent to HK$28. The stock has fallen more than 20 percent so far this year.
Xiaomi settles lawsuit with US Department of Defense, to be moved off blacklist
