Xiaomi was added to a US military list of alleged Chinese military companies in January this year. The Chinese conglomerate had filed a lawsuit against the ban.
On Tuesday, the US Department of Defense agreed to remove Xiaomi from the blacklist. The news led to over 6.5 per cent rise in Xiaomi shares.
“The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing,” read the court filing.
In March, a US court temporarily halted the ban on Xiaomi, saying the company was likely to win a full reversal and would “suffer irreparable harm in the form of serious reputational and unrecoverable economic injuries.”
Xiaomi and the US Department of Defense will now work on a “joint proposed order” on or before May 20 to be submitted to the court.