In the final days of Donald Trump's presidency, the US government wanted to follow up the Huawei and ZTE bans with another one, this time aimed at Xiaomi. However, the company was able to get a preliminary injunction from the US District Court for the District of Columbia, removing the restrictions on the business a week before they were scheduled to go into effect. And ass Bloomberg reports, it looks like Xiaomi and the US government have finally come to an agreement, completely removing the company from the entity list.

The exact details of the agreement are still to be disclosed, with neither the US government nor Xiaomi commenting. The filing just specifies that "the Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing," without going into any details. That's because the parties are still negotiating specific terms, which will be publicized before May 20. Read more about this in our dedicated coverage here.

Under the authority of Section 1237 of the National Defense Authorization Act, Xiaomi originally was not going to be allowed to acquire goods and services from US vendors starting March, similar to many other Chinese companies. But according to Bloomberg, the district court moved to put a temporary halt on the ban before it could take effect, saying that it was "arbitrary and capricious" and that it could cause "irreparable harm" to the business. Judge Rudolph Contreras went as far as saying that "the court is somewhat skeptical that weighty national security interests are actually implicated here," and that it was likely that Xiaomi would win a full reversal of the ban.

It looks like Xiaomi will be able to reverse the ruling completely, and it will likely also lose its designation as a "Communist Chinese Military Company," which it deems unlawful. It has again and again reiterated that it's a "publicly traded and independently operated" corporation offering products "solely for civilian use."

Maybe Huawei and ZTE will also be able to reverse their bans at some point in the future.

UPDATE: 2021/05/12 10:21am PDT BY MANUEL VONAU

Xiaomi ban fully averted

Xiaomi and the US government have come to an agreement, averting the ban before it could take effect. We've updated the article accordingly. For more details, read our dedicated coverage on the topic here.

Source: Xiaomi

Via: Bloomberg