The US Department of Defense is reversing former President Donald Trump’s sanction against Chinese telecom company Xiaomi (HKSE: 1810.HK).

The placement of Xiaomi on the blacklist prohibited US based investors. The US Department of Defense tightened the Chinese company’s ties with the military to ban Xiaomi. An accusation that the smartphone company immediately dismissed. In legal filings, Xiaomi said the evidence offered by the U.S. didn’t prove ownership by or affiliation with the Chinese military.

The Chinese smartphone manufacturer filed a lawsuit against the federal government. In March, a federal judge already temporarily blocked enforcement of the blacklist.  Xiaomi declined to comment. Chinese Foreign Ministry spokeswoman Hua Chunying said she wasn’t aware of any deal the firm may have reached with the U.S.   

TikTok

Other Chinese companies on the blacklist are also considering lawsuits, Reuters reported. These companies include but are not limited to the smartphone giant Huawei, the video app TikTok and the chat service WeChat blacklisted under Donald Trump’s presidency. Joe Biden wants to rethink sanctions against those companies. 

Xiaomi shares soared over 6% in Hong Kong when the news spread on Wednesday. Which results in Xiaomi’s stock price being down about 28% since January.

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