The verdict means that Xiaomi has finally shaken off a geopolitical burden that weighed down its shares since earlier this year.
US investors will be prohibited from buying Xiaomi shares and will have to divest their holdings by November, according to the executive order.
Xiaomi asked the court remove it from a defense blacklist that bans Americans from investing in companies linked to the Chinese military.
China, the world’s largest semiconductor market, is highly reliant on foreign technology and aims to make 70% of the chips it uses by 2025.
Xiaohongshu, the $6 billion firm backed by Alibaba and Tencent, could join an increasing list of Chinese tech firms heading to the public markets.
Eight months after a US court rejected Magic Leap’s IP theft lawsuit against Nreal, the mixed reality startup prepares for a US launch.