Xiaomi wins court ruling against US restrictions

Xiaomi has announced that it has won the court ruling against several U.S. government agencies after it designated the smartphone manufacturer as a Chinese Communist Military Company.

In January, the U.S. Department of Defense under the Trump administration added nine Chinese firms, including Xiaomi Corporation to its list of “Communist Chinese military companies.” Trump’s Executive Order, which took effect on January 11, 2021, prevents U.S. investors from investing in the listed companies by November 11, 2021.

Xiaomi has denied the allegations and filed a lawsuit as the designation would cause “cause immediate and irreparable harm” and affect its global reputation.

On March 12, 2021, “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 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 said in a statement.

“Xiaomi reiterates that it is a widely held, publicly traded, independently managed corporation that offers consumer electronics products solely for civilian and commercial use,” it added.