In January, the US government announced 9 Chinese companies will be included in the so-called “list of Chinese military companies”. Xiaomi was on the list. The government also announced that it will restrict American investors from trading in the securities of these companies.
On March 13, according to CCTV reports, Washington, D.C. District Judge Rudolf Contreras issued a preliminary injunction against Xiaomi’s lawsuit against the U.S. government, prohibiting the U.S. from listing Xiaomi as the so-called “Chinese military company list”. It is forbidden to restrict US investors from trading in Xiaomi’s securities.
Judge Contreras said that the US government’s previous decision was “arbitrary and capricious, depriving the company of its legitimate legal rights. The US government hasn’t fully stated the company poses a serious threat to the security of the United States”. He also said that as the lawsuit unfolds, Xiaomi is likely to win a full revocation of the ban.
Then, Lei Jun reposted the CCTV report on his personal Weibo. A spokesperson of the company responded that the company was very pleased to see that at 4:59 on March 12th, U.S. time, the U.S. court issued a temporary injunction. In addition, it suspended the administrative order identifying Xiaomi as a Chinese military-related enterprise and lifted U.S. investment restrictions on the purchase and holding of the firm’s stocks. The temporary ban took effect immediately.
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A spokesperson for Xiaomi said that they once again emphasized that Xiaomi is a publicly-traded, listed company with independent management. The Xiaomi products are all electronic products for ordinary consumers. We believe that adding the company to the list of Chinese military-related companies is a hasty and arbitrary decision. And the judge also agreed with it. They promise to continue to request the court to finally rule that the administrative order is invalid for Xiaomi.