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In mid-January this year, the Trump administration added Xiaomi to a list of alleged Communist Chinese military companies operating directly or indirectly in the United States. The company fought back, suing the the U.S. Defense and Treasury departments.
Yesterday, Xiaomi got a respite. A U.S federal judge ordered a temporary halt to the ban, effectively still allowing Americans to invest in the world’s third-biggest smartphone vendor. If Xiaomi had not won the case, the restrictions would have gone into effect March 15.
According to U.S. District Judge Rudolph Contreras in Washington, D.C., “The defendants have not made the case that the national security interests at stake here are compelling.” Below are public documents detailing the decision of the court.
The decision came out on the same day the Federal Communications Commission designated five Chinese companies — one of which is Huawei — as threats to U.S. national security.
In a statement sent to us at Revü Philippines, Xiaomi welcomed the court ruling, adding that it will continue to seek for the permanent removal of its CCMC designation. We are publishing its official statement in full.
“Xiaomi is pleased to see that on March 12, EST, the court enjoined DOD from implementing or enforcing the designation of Xiaomi as a CCMC. Pursuant to the injunctive relief granted, the Court removed, in full and with immediate effect, the Executive Order 13959 restriction on U.S. persons to purchase Xiaomi’s securities and the requirement on U.S. persons to divest their holdings.
Xiaomi reiterates that it is a widely held, publicly traded, independently managed corporation that offers consumer electronics products solely for civilian and commercial use.
Xiaomi believes that the decisions of designating it as a Chinese Communist Military Company are arbitrary and capricious, and the judge agrees with it. Xiaomi plans to continue to request that the court declare the designation unlawful and to permanently remove the designation.
Xiaomi is a young and energetic technology company. Over the years, we have offered amazing consumer electronics products such as smartphones and smart TVs with honest prices to consumers all over the world. We are committed to working with our global partners to let everyone in the world enjoy a better life through innovative technology.”
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