Today, Xiaomi Group and the US Department of Defense once again issued a Joint Status Report (JSR) on the military inventory litigation. According to documents, the U.S. government has acknowledged the procedural justice issues on the military list and is willing to settle with the Xiaomi Group and remove the Xiaomi Group from the military list.
On January 14, the US government included 9 Chinese companies, including Xiaomi, on the blacklist of so-called “relevant to the Chinese military” to prevent American investors from investing in these companies. The investment ban will take effect next week. The Xiaomi Group later sued the U.S. Department of Defense and the U.S. Department of Treasury in the U.S. District Court for the District of Columbia on January 29.
Xiaomi believes that in the decision of the above two organizations to include the company as a “Chinese military company” recognized by the NDAA, there were procedural unfairness and factual identification errors. In order to protect the interests of the company’s global users, partners, employees, and shareholders, it requested the court to declare the decision illegal and revoke the decision.
On March 13, Washington District Judge Rudolph Contreras issued a preliminary injunction to prevent the Department of Defense from restricting US investors’ investment in the Xiaomi Group.
The document shows that the US government and Xiaomi Group have agreed to settle the lawsuit peacefully. The Defense Department and other defendants also agree that it is appropriate to adopt a final resolution to remove Xiaomi Group from the military list. The two parties will negotiate and draft specific content on the final resolution. They should submit it to the court on or before May 20.