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The US Xiaomi ban is now completely off the table
Xiaomi has released a statement confirming that all restrictions have formally been lifted
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Xiaomi was labeled a national security threat in the United States during the waning days of the Trump administration, following similar action against Huawei and ZTE. The company filed a lawsuit against the US government in order to prevent the ban, and on May 12, both parties have reached a settlement that will remove the technology giant from being blacklisted altogether. Now, Xiaomi has published a statement on the litigation, announcing that the US District Court of Columbia issued a final order, formally lifting all restrictions.
Xiaomi and the US government come to an agreement, averting a ban
Fully resolved following a temporary exemption
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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.
Xiaomi responds to being blacklisted by the US government
Billions of dollars in funding could be at risk
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The Trump administration is dubbing Xiaomi a national security threat in a fashion similar to how it did Huawei and ZTE. However, the "Communist Chinese military company" label has a greater effect to this particular tech manufacturer than the others.
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For the third time this year, the US Commerce Department has granted another 90-day reprieve to Huawei that lets American companies continue to do business with China's biggest telecom. The new rule takes effect on November 18th, and it follows the first extension granted in May and the second in August.
Huawei is being given another 90-day reprieve by the U.S. government, following the Temporary General License (TGL) issued back in May. That provides the company with three more months to continue purchasing goods from U.S. companies. While this extension might sound like a step towards dropping the Entity List import/export ban for good, the government is clear that the extra few months are merely meant to "afford consumers across America the necessary time to transition away from Huawei equipment."
The Department of Commerce has announced a 90-day reprieve to an import ban against Chinese manufacturer Huawei. The company now has a Temporary General License to engage with U.S. vendors on a limited basis — in this case, Google will be allowed to provide software updates to Huawei for its Android phones while Huawei's component suppliers will be able to finish deliveries for previously-made orders. It will also give telcos dependent on Huawei products time to potentially find alternative solutions.
Huawei and its U.S.-based suppliers remain on eggshells as the Trump administration has yet to issue special permits allowing domestic companies to ship product to the Chinese tech manufacturer — this is going on as Huawei's temporary reprieve from an Commerce Department import ban is headed into its last week. Now, there's word from Bloomberg's sources that the White House is stalling on approving the permits.
Beyond the political luggage generated in the midst of the protracted U.S.-China trade dispute, the American import ban that Huawei has to deal with is laden with doubt from tech critics who chide D.C. with inhibiting innovation in mobile phones. Lest we forget, though, that the Department of Justice is pursuing the Chinese tech behemoth for stealing trade secrets and fraud in relation to Iran sanctions breaches. Now, we're learning of leaked documents that tie Huawei to business conducted in another adversarial country: North Korea.
When the US added Huawei to the Entity List last month, it sparked a series of troubles for the Chinese manufacturer that are beginning to have significant consequences on its shipments and revenue. Indeed, the company has been banned from doing business with US organizations, which means it had to stop its working relationships with chip manufacturers and even Google.
It's no secret Huawei has been going through some serious issues after it's been added to the US Entity List, preventing it from doing business with US companies. Indeed, most of the manufacturer's American partners were fast in cutting their ties with it, ranging from Google to chip manufacturers. ARM's decision to do the same also prevented the Chinese firm from continuing to build its Kirin chips, which were featured in most of its devices. Although Huawei is trying to overcome these woes with in-house software and working with Aptoide to put in place a Play Store replacement, it's struggling to convince the world about its viability. For instance, UK carriers have halted the commercialization of the conglomerate's devices due to the current situation. New information reports Foxconn stopped manufacturing Huawei's devices, further confirming the company is in trouble.
Just a few days after the US added Huawei to its "Entity List," things are continuing to go south for the Chinese manufacturer. The demise began with Google announcing it would put an end to its partnership with the company, and continued with major chip manufacturers blacklisting it. Although Huawei is trying to mitigate the first issue by working on an in-house operating system, hardware related bans are much more complex to overcome. To make things worse, ARM has just asked its employees to stop working with the Chinese tech giant, which puts the company's Kirin chips at risk.
It has been a weird couple of months for ZTE since the US Commerce Department imposed a complete trade ban on ZTE that cut it off from its US suppliers. ZTE was forced to shut down while it worked on a solution with the government, and now it's back in action. The Commerce Department has confirmed that ZTE followed through with the new settlement requirements, so the trade ban is no more.
After the U.S. Department of Commerce banned ZTE from importing US-made components, due to the company violating an agreement it made in 2017, ZTE shut down most operations while it fought to lift the ban. The Commerce Department told ZTE it had to pay over a billion dollars in fines and replace its entire senior leadership for the ban to be lifted, which ZTE agreed to last month.
After the U.S. Department of Commerce banned ZTE from importing US-made components, due to the company violating an agreement it made in 2017, ZTE shut down most operations while it fought to lift the ban. Earlier this month, Trump announced he wanted to help ZTE, as part of negotiating a trade deal with China.