The U.S Department of Defense had designated the company as a Communist Chinese Military Company in January 2021
Respite for the China-headquartered Xiaomi came in the form of a court order vacating The U.S Department of Defense’s decision of listing the company as a Communist Chinese Military Company (CCMC).
Xiaomi, in a press note mentioned that on 25 May 2021, the U.S. District Court for the District of Columbia issued a final order vacating the the U.S Department of Defense’s designation of the company as CCMC. In vacating the designation, the court formally lifted all the restrictions on U.S persons’ ability to purchase or hold securities of the Company.
In 2020, Xiaomi’s total revenue for the year amounted to RMB245.9 billion, representing an increase of 19.4 per cent year-over-year; adjusted net profit for the year was RMB13.0 billion, representing an increase of 12.8 per cent year-over-year, exceeding market expectations. In the fourth quarter of 2020, the Group’s revenue amounted to RMB70.5 billion representing an increase of 24.8 per cent year-over-year; adjusted net profit was RMB3.2 billion representing an increase of 36.7per cent year-over-year.
United States, in April 2021, announced that it was imposing new restrictions on exports made by companies located in the country to China. The same, as per a report by Reuters, is being done to keep semiconductor equipment and other technology away from China’s military.
USA, back in 2019, had first announced restrictions on China-headquartered Huawei. The relations between the two countries have been deteriorating.
A recent report by a Korea-based news portal had accused China-located semiconductor companies of stealing semiconductor patents. The report had also claimed that one of China-based semiconductor companies was keeping its Wuhan-facility operating even during the coronavirus outbreak.
