Court ruling suspends US ban on investment in Xiaomi
© Reuters. FILE PHOTO: People wearing protective face masks visit Xiaomi brand’s store in Kyiv
(Reuters) – A US federal judge on Friday temporarily blocked the Department of Defense from forcing American investors to divest from Chinese smartphone maker Xiaomi (OTC 🙂 Corp on the grounds the company has ties to China’s military.
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.
Xiaomi in late January filed a complaint in a Washington court seeking to be removed from the list, calling its inclusion “unlawful and unconstitutional” and arguing it was not controlled by the People’s Liberation Army.
US District Judge Rudolph Contreras in Washington, DC, said on Friday that the court “concludes that defendants have not made the case that the national security interests at stake here are compelling.”
The Defense Department did not immediately respond to a request for comment.
In a statement, a Xiaomi spokesperson welcomed the ruling and called the designation of Xiaomi as a Chinese military company “arbitrary and capricious.”
“Xiaomi plans to continue to request that the court declare the designation unlawful and to permanently remove the designation,” the spokesperson said.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.