Xiaomi has legally won its battle against a U.S. government move that sought to ban investment in the Chinese company and could’ve forced American investors to divest their holdings. The restrictions were supposed to go into effect next week. Still, a federal court has blocked the U.S. government’s bid to put an investment ban on the company – something that could’ve done ‘irreparable damage’ in Xiaomi’s own words.
Xiaomi will likely get permanent relief as the case proceeds.
U.S. District Judge Rudolph Contreras has temporarily blocked the investment ban, adding that the company will likely get permanent relief as the case proceeds. Following the court ruling, Xiaomi now seeks another court ruling that will declare being called a ‘Chinese military company’ unlawful and permanently remove it, reports Bloomberg.
– Reuters
A brief history of events
The U.S. Department of Defense added Xiaomi to its list of “Communist Chinese military companies.” Under an executive order signed by former President Donald Trump, it sought an investment ban on Xiaomi. As per the order, American companies were supposed to divest their holdings in Xiaomi, with the Chinese company even facing the risk of being delisted from U.S. exchanges. Xiaomi was designated a Communist Chinese military company by the Department of Defense.
