A federal judge in Washington DC has blocked the restrictions imposed by the US Department of Defense on Xiaomi by including the company on your Military End User List, reports Bloomberg. In this way, the Chinese company will be able to continue receiving investments from US companies.
Judge Rudolph Contreras issued a ruling in favor of Xiaomi and put a temporary halt to the restrictions of the Department of Defense, as a solution to the demand imposed by the company, where it describes as “arbitrary and capricious” the movement of the government agency. Judge Contreras wrote in his statement:
The court is somewhat skeptical that compelling national security interests are really involved here.
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The ban on US companies from investing in Xiaomi, as a result of being blacklisted by the Department of Defense, was scheduled to take effect next week, according to Bloomberg, but with this ruling by Judge Contreras the effect is eliminated.
Nevertheless, the detail that this failure is temporary is importantIn other words, the situation is not over yet and we have to wait for the response from the Department of Defense to try to reverse this first ruling in favor of Xiaomi. For its part, the company will continue with its mission of seeking the total elimination of its inclusion in this blacklist.
Xiaomi’s inclusion in the Defense Department’s Military End-User List was last January, to which the company responded with a lawsuit shortly thereafter. More recently, a report from WSJ revealed that the main reason for Xiaomi’s inclusion in this blacklist is that its CEO and founder received an award from the government of China in 2019, enough for the Trump administration, in its last days, to classify the company as “company with military ties”.
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