A federal judge in Washington has banned the Department of Defense from restricting U.S. investments in Chinese smartphone maker Xiaomi.
In the final days of Donaln Trump’s administration, the Department of Defense listed Xiaomi on a list of companies allegedly linked to the Chinese military, leading to financial restrictions that were to come into effect later. But on Friday, US District Judge Rudolph Contreras temporarily suspended the ban, backing Xiaomi, which said the move was “headstrong and capricious” and stripped the company of its due process rights.
Contreras said Xiaomi is likely to receive a complete lifting of the ban as the lawsuit unfolds, and issued an initial injunction to prevent “irreparable harm” from being inflicted on the company. Xiaomi has said that it plans to continue to demand that the court declare illegal the company’s fictitious relationship with the Chinese military.
In November, former President Donald Trump signed a decree banning US investment in Chinese firms owned or controlled by the military in an attempt to pressure Beijing. The US has also imposed bans on popular Chinese apps like WeChat and TikTok, citing threats to national security.
US District Judge Rudolph Contreras commented: “The Court is somewhat skeptical that serious national security interests are actually involved.».
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
