Xiaomi was blacklisted from getting US investments over allegations of having connections with the Chinese military. The company denied these allegations and sued the US government for the “unconstitutional ban”. The US court has now favoured the case in Xiaomi’s favour. Xiaomi is no longer banned from raising US investments. The US court enjoined DoD from implementing or enforcing the designation of Xiaomi as a Chinese Communist Military Company (CCMC). The court also removed the executive order that restricted Xiaomi from getting US investments. Xiaomi has also issued a statement following the court order.
US court uplifts Xiaomi ban from getting American investments
Xiaomi, In January, was banned by former US President-led Donald Trump government for alleged association with the Chinese military. The company immediately denied the allegations. It later dragged the US Defence and Treasury departments to the court for the “unconstitutional” ban.
The ban blocked Americans from directly investing in or buying smartphones from the Chinese tech giant. The US court has now ruled the decision in favour of the Chinese company. It has removed the executive order 13959 on US persons to purchase securities and the requirement on US persons to divest their holdings.
The US court enjoined DoD from implementing or enforcing the designation of the smartphone maker as a Chinese Communist Military Company (CCMC).
Following the court’s decision, the company has issued a statement. “Xiaomi reiterates that it is a widely held, publicly traded, independently managed corporation that offers consumer electronics products solely for civilian and commercial use,” the statement read. It further said that Xiaomi the decisions of designating the company as a Chinese Communist Military Company are arbitrary and capricious, and the judge agrees with it.
The Chinese tech behemoth plans to continue to request that the court declare the designation unlawful and to permanently remove the designation.
“Xiaomi is a young and energetic technology company. Over the years, we have offered amazing consumer electronics products such as smartphones and smart TVs with honest prices to consumers all over the world. We are committed to working with our global partners to let everyone in the world enjoy a better life through innovative technology,” a company spokesperson said.