Chinese electronics company Xiaomi announced Wednesday morning at the Hong Kong Stock Exchange that at 4pm Eastern Time on May 25, the US District Court for the District of Columbia issued a final judgment regarding the company’s previous designation as a “Communist Chinese Military Company” (CCMC).
“In vacating the designation, the court formally lifted all restrictions on US persons’ ability to purchase or hold securities of the Company,” Xiaomi’s official statement read. The company managed to overturn the previous verdict after months of litigation.
The Beijing-based tech company was placed on the US Defense Department’s CCMC blacklist in January this year during the final days of Donald Trump’s presidency. In all, the US government included nine Chinese companies companies on the blacklist.
The blacklisting caused Xiaomi’s stock price to drop sharply. Officials at the company reacted strongly to the news, affirming that it was not owned, controlled or related to the Chinese military, nor was it a Chinese military company as defined by the US NDAA law.
“The company reiterates that it is an open, transparent, publicly traded, independently operated and managed corporation,” Xiaomi chairman Lei Jun said in the statement.