Hong Kong: Shares of Chinese smartphone maker Xiaomi rose more than 10% in Hong Kong today after a US judge removed them from a blacklist that prevented US companies from investing in them.
The company’s share price has plummeted since mid-January when Donald Trump, in his final days in office, included it in a group the White House deemed a threat to the national security of the United States.
The move has ranked Xiaomi, which is among the world’s largest smartphone makers, as one of nine “Chinese Communist military companies” that also includes the state oil giant CNOOC and the popular social media app TikTok.
But US District Court Judge Rudolph Contreras ruled on Friday that the Defense and Treasury departments “have not brought a case that national security interests at risk here are convincing.”
He removed Xiaomi from the blacklist and suspended the investment ban after the company was stabbed to be blacklisted.
The news sent shares in the company up 12% in Hong Kong morning trade today, after losing more than 40% since Trump’s request.
However, while removing Xiaomi, US regulators included Huawei and ZTE among Chinese telecom equipment makers who were considered a threat to national security, indicating that a hoped-for easing of ties is not on the table.
Washington alleges that Huawei has close ties to the Chinese military and that Beijing may use its equipment for espionage – accusations the company denies.