Home Tech News Xiaomi Wins Court Ruling against US Restrictions

Xiaomi Wins Court Ruling against US Restrictions

1728
0
Xiaomi to invest $10 Billion for their Electric Cars
Xiaomi to invest $10 Billion for their Electric Cars

In a recent report by Bloomberg, a US federal judge has blocked the Defense Department from constricting US investments with Xiaomi Corp.

During the last days of the Trump administration, the Defense Department issued an order that placed Xiaomi in a list among companies that seemingly have ties with the Chinese military. This triggered financial restrictions that would take effect next week. Then, just this Friday, a temporary halt was placed by U.S. District Judge Rudolph Contreras. This was in favor of Xiaomi stating that the lawsuit was “arbitrary and capricious” which stripped the company of its rights of due process.

In a statement given by Contreras, he said the smartphone manufacturer would likely have the favor on its side and eventually turn the ban into a reversal. He also stated that an initial injunction was issued to the company that would prevent them from suffering “irreparable harm.” Xiaomi then would face being de-listed from the U.S. exchange and be removed from the global benchmark indexes after announcing the ban.

In a company statement, Xiaomi plans to request the court to declare its connections from the Chinese military unlawful and remove its designation permanently.

Last November 2020, former U.S. President Donald Trump issued an order banning U.S. investments to Chinese companies claiming that the Chinese military is controlling it. Also, the ban even was issued with other Chinese-owned apps such as WeChat and TikTok stating that these would ensure a national security threat.

Contreras on the other hand brushed the concerns stating on Friday, “The court is somewhat skeptical that weighty national security interests are actually implicated here.”

As of the moment, the Defense Department has not yet given its comments or statements regarding the case.

Source

READ:

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.