A US court has averted the threat of Xiaomi being frozen out of future US investment. A final verdict on the case is yet to be delivered, but the judge has already hinted at a complete withdrawal of the US ban. Xiaomi insists that it has no ties to the Chinese military.
In January, Xiaomi filed a complaint with a US court against the US Defense Department’s decision to impose sanctions upon the company last year. The sanctions, which would have imposed financial restrictions against Xiaomi, were set to commence this week. However, US District Judge Rudolph Contreras has halted the imposition of sanctions that would have classed Xiaomi as a Communist Chinese Military Company (CCMC).
Judge Contreras has also hinted that Xiaomi could see a reversal of the ban entirely, but the current injunction prevents any sanctions from coming into effect. According to the Memorandum Opinion published by the District Court, Contreras added that ‘the court is somewhat sceptical that weighty national security interests are actually implicated here’. If you are interested in reading the memorandum, then you can do so here.
Unsurprisingly, Xiaomi has reiterated that it is a ‘publicly traded…corporation…for civilian use’ and will continue to request that the court remove the CCMC designation. You can read Xiaomi’s full statement below. The US Defense Department is yet to comment on the injunction.
Alex Alderson, 2021-03-15 (Update: 2021-03-15)