In a new FAQ, OFAC clarified that the prohibitions in Executive Order 13959 ("Addressing the Threat from Securities Investments That Finance Communist Chinese Military Companies") do not apply to Xiaomi Corporation.

OFAC explained that the FAQ follows from a U.S. District Court for the District of Columbia Order vacating the listing of Xiaomi Corporation as a Communist Chinese military company. The Court had previously granted Xiaomi's Motion for a Preliminary Injunction enjoining enforcement of prohibitions under Executive Order 13959. Under the Final Order, which was proposed jointly by Xiaomi and the U.S. Department of Defense ("DoD") and signed by the Court, the January 2021 listing of Xiaomi on DoD's list of Communist Chinese Military Companies was found to be "inconsistent with the Administrative Procedures Act."

Primary Sources

  1. OFAC Press Release: Publication of Frequently Asked Question Related to Xiaomi Corporation and Removal of Existing FAQ
  2. OFAC FAQ: Chinese Military Companies Sanctions - 896

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