Xiaomi welcomes US judge’s ruling on Defence Department blacklist
Recognition: Eric Zeman / Android Authority
- A US judge has temporarily suspended Xiaomi’s blacklisting by the US Department of Defense.
- Xiaomi welcomed the ruling but said it would seek permanent removal of the designation.
Xiaomi has welcomed the decision of a US judge to temporarily suspend inclusion on a US blacklist. It did so after the company sued the US over the decision.
The US federal judge Contreras decided in favor of Xiaomi to stop his listing. Contreras believed the US Department of Defense’s move was “arbitrary and capricious.” While the verdict only stopped Xiaomi’s blacklisting, the judge also reportedly believes the ban will result in a complete reversal, according to the testimony Bloomberg.
Xiaomi was reportedly condemned as a Chinese Communist Military Company (CCMC) by the U.S. Department of Defense a few days before Donald Trump’s withdrawal from the White House. The department apparently believes the company shares ties with the Chinese military. Xiaomi has refused any connections and has maintained its independence as a publicly traded company.
While Xiaomi could continue to trade with other US companies if blacklisted by CCMC would force US investors to sell their holdings in the company. This would have a significant impact on the company’s finances.
Xiaomi’s answer
Xiaomi welcomed the ruling in a statement issued on March 14.
“The company believes the decisions to designate a CCMC are arbitrary and capricious, as the judge agrees. The company will continue to require the court to permanently remove the designation, ”said Xiaomi.
