- A US judge has temporarily halted Xiaomi’s placement on a blacklist by the US Department of Defense.
- Xiaomi welcomed the ruling but said it will seek the permanent removal of the designation.
US Federal Judge Contreras ruled in Xiaomi’s favor to halt its placement on the list. Contreras believed that the US Department of Defense’s move was “arbitrary and capricious.” While the ruling has only halted Xiaomi’s placement on the blacklist, the judge also reportedly believes that the ban will see a full reversal, according to Bloomberg.
Xiaomi was reportedly judged a Communist Chinese Military Company (CCMC) by the US Department of Defense just days before Donald Trump’s departure from the White House. The department seemingly believes the firm shares ties with the Chinese military. Xiaomi has denied any links and maintained its independence as a publicly-traded company.
While Xiaomi could still trade with other US companies if placed on CCMC blacklist, it would force US investors to divest their holdings in the company. This would have a stark impact on the firm’s financials.
Xiaomi welcomed the ruling in a statement issued on March 14.
“The company believes that the decisions of designating it as a CCMC are arbitrary and capricious, as the judge agrees. The company will continue to request that the court permanently remove the designation,” Xiaomi said.