US agrees to remove Xiaomi from blacklist after lawsuit

Xiaomi Corp. and the U.S. government have reached an agreement to set aside a Trump administration blacklisting that could have restricted American investment in the Chinese smartphone maker.

The Chinese smartphone giant had sued the government earlier this year, after the U.S. Defense Department under former President Donald Trump issued an order designating the firm as a Communist Chinese Military Company, which would have led to a de-listing from U.S. exchanges and deletion from global benchmark indexes. The U.S. Defense Department has now agreed that a final order vacating the designation “would be appropriate,” according to a filing to the U.S. courts Tuesday.