Federal judge in Washington, DC The restrictions that the US Department of Defense imposed on Xiaomi prevented By including the company in your military end-user list, Reports Bloomberg. In this way, the Chinese company will be able to continue to receive investments from American companies.
Judge Rudolf Contreras issued a ruling in favor of Xiaomi A temporary suspension of the Ministry of Defense restrictions was put in place as a solution to the demand imposed by the company, as it describes the government agency’s movement as “arbitrary and volatile.” Judge Contreras wrote in his statement:
The court is somewhat skeptical that compelling national security interests are really involved here.
The ban on American companies from investing in Xiaomi, as a result of its blacklisting by the Ministry of Defense, was due to take effect next week, according to BloombergBut with this judgment by Judge Contreras the effect will be removed.
however, The details that this failure is temporary is importantIn other words, the situation is not over yet and we have to wait for the Ministry of Defense to respond to try to reverse this first ruling in Xiaomi’s favor. For its part, the company will continue its mission of seeking to completely eliminate its inclusion on this blacklist.
Xiaomi was included in the list of military users of the Ministry of Defense last January, to which the company responded with a lawsuit shortly afterwards. Recently, a report from Wall Street Journal He revealed that the main reason for Xiaomi to be blacklisted is that Its CEO and founder got an award from the government of China in 2019It suffices for the Trump administration, in its final days, to classify the company as a ‘A company with military ties’.