Court ruling suspends U.S. ban on investment in Xiaomi

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A U.S. federal judge on Friday temporarily blocked the Department of Defense from forcing American investors to divest from Chinese smartphone maker Xiaomi Corp on the grounds the company has ties to China's military.

FILE PHOTO: People wearing protective face masks visit Xiaomi brand's store, amid the outbreak of the coronavirus disease in Kyiv, Ukraine October 22, 2020. REUTERS/Valentyn Ogirenko

The Defense Department, under the Trump administration in mid-January, added Xiaomi and eight other firms to a list that requires Americans to sell their interests in the firms by a deadline. The restrictions were set to go into effect next week. U.S. District Judge Rudolph Contreras in Washington, D.C., said on Friday that the court “concludes that defendants have not made the case that the national security interests at stake here are compelling.”In a statement, a Xiaomi spokesperson welcomed the ruling and called the designation of Xiaomi as a Chinese military company “arbitrary and capricious.”

 

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