A court filing has revealed that the US Department of Defense will remove China’s Xiaomi from a government blacklist, clearing the way for any future US investment in the Beijing-based smartphone maker.

The filing said the two sides would agree to resolve their ongoing litigation without further competition, ending a brief and contentious dispute between the hardware company and Washington.

A Xiaomi spokesperson said without giving further details that the company is closely monitoring the latest developments. The company’s shares in Hong Kong rose more than 6% as news of the decision spread.

China’s Huawei plans to make electric vehicles

Defense Department officials were not immediately available for comment after US working hours.

Earlier this year, the US Department of Defense under the Trump administration designated the company as having ties to China’s military and placed it on a list that would restrict US investment in the company.

Seven other Chinese companies were also placed under similar sanctions.

Xiaomi took an aggressive stand by filing a lawsuit against the US government, calling its placement “illegal and unconstitutional” and denying any ties to China’s military.

In March, under the new Biden administration, a federal judge temporarily halted enforcement of the blacklisting, citing the US government’s “deeply flawed” process for including it in the ban.

Shortly after that victory, Reuters reported that other Chinese companies placed on the same blacklist were considering similar lawsuits.

Xiaomi was one of the more high-profile Chinese technology companies that former President Donald Trump targeted for alleged ties to China’s military in the final days of his administration.

Apple targets car production by 2024 and eyes ‘next level’ battery technology

Trump has made countering Beijing’s rise a centerpiece of his administration’s economic and foreign policy.

Xiaomi’s local smartphone rival Huawei was also put on an export blacklist in 2019 and blocked from accessing critical US-origin technology, affecting its ability to design its own chips and source components from outside vendors Was.

These measures effectively crippled the company’s smartphone division.

Later, the US Department of Defense imposed similar sanctions on China Semiconductor Manufacturing International Corporation, a key key to China’s national drive to boost its domestic chip sector.