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A federal judge has blocked the US Department of Defense from imposing restrictions on Chinese smartphone maker Xiaomi that were due to go into effect next week.
Just before former President Trump stepped down in January, the DoD designated Xiaomi as a “Chinese Communist Military Company” (CCMC), subjecting it to Trump’s executive order banning the United States from investing in such companies. . But on Friday evening, US District Judge Rudolph Contreras issued a preliminary injunction to prevent what he called “irreparable harm” to Xiaomi, saying the designation was “arbitrary and capricious”.
Xiaomi said in court filings that it would suffer “extreme and irreversible damage” to its business and reputation if the restrictions take effect, and maintained that it operates “in accordance with the relevant laws and regulations of the jurisdictions in which it operates. his activities”. A spokesperson for the company said The edge in January, that Xiaomi “is not owned, controlled or affiliated with the Chinese military, and is not a ‘Chinese Communist Military Company’.”
In his decision on Friday, Contreras questioned the Trump administration’s argument that “Chinese civilian companies” like Xiaomi allow the Chinese government to “directly threaten the homeland of the United States.”
“The court is somewhat skeptical that important national security interests are really involved here,” the judge wrote.
Xiaomi said in a statement that it will continue to request that the CCMC designation be permanently removed.
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