Xiaomi won the case against the Pentagon and emerged from sanctions

The US Department of Defense will remove the Chinese telecommunications corporation Xiaomi from the sanctions list, which included Chinese companies associated with the military, REUTERS reports.

The District of Columbia COURT in the United States has invalidated the Pentagon's decision to list Xiaomi as a "Chinese military enterprise". Now, US investors will once again have the right to legally buy stocks and bonds of Xiaomi.

The Trump administration blacklisted nine Chinese companies in the final days of his presidency, including aircraft manufacturer Comac and Xiaomi. Americans have been barred from investing in listed companies because Washington suspects them of ties to the Chinese military-industrial complex. American investors were then ordered to get rid of the assets of these companies by November 11, 2021.

Such sanctions are provided for by a 1999 law requiring the Department of Defense to maintain a catalog of companies owned or controlled by the Chinese military.

Shares of Xiaomi rose by 5% after the announcement that due to the lifting of sanctions, the provider FTSE Russell will return shares of the smartphone maker to its indexes. Xiaomi shares will be added to the FTSE Global Equity Index Series (GEIS) in two tranches: 50% from the opening of trading on June 7, and the remainder on June 21. Also in June, the company will be appreciated for compliance with the requirements for inclusion in the FTSE CHINA 50 index.