It looks like Xiaomi is likely going to have a break when it comes to their impending U.S. ban. In a court ruling released on the 13th of March, a judge in the District of Columbia, Rudolph Contreras, found that the classification of Xiaomi as a “Chinese Communist military company” was “arbitrary and capricious” and granted the company a preliminary injunction against the restrictions that were due to take effect. In addition to issuing the preliminary injunction, the judge stated that filing of the claim from the Department of Defense lacked “a satisfactory explanation” and lacked a rational connection between the facts and the conclusion made. The preliminary injunction bodes well for Xiaomi as the company looks to reverse the classification all together.
Xiaomi found itself in the middle of a legal battle towards the end of Trump’s administration. The Department of Defense, under Trump, declared Xiaomi a threat to national security citing ties to the Chinese government. However, Xiaomi has since denied the claim. In their court filing, the company cited that the classification would cause irreparable damage and losses. Keep in mind, the ban that Xiaomi was facing is not the same as the one Huawei is facing. Xiaomi was facing a ban on investments from the U.S. If the injunction was denied, any individual or company linked to the United States would have had to divest their shares in the company by November. This was clarified by Xiaomi when it announced that Google Play Services would remain on its international phones.
Xiaomi has since issued a public statement regarding the matter.
