Xiaomi wins court ruling

IMAGE: Mi Store Megamall Courtesy of: JamOnline

As you may have known, the US Department of Defense blocked Xiaomi from investing in US companies, accusing them to have ties within the Chinese Government. In response, Xiaomi released a statement: “Xiaomi confirms it is not owned, controlled or affiliated with the Chinese military, and is not a ‘Communist Chinese Military Company’ defined under the NDAA [National Defense Authorization Act]. The company will take appropriate course of actions to protect the interests of the company and its shareholders”

After the ban took place, Xiaomi was delisted from US exchanges and removed from Global benchmark Indexes.

Recently, a federal judge blocked the Department of Defense from investment restrictions. US judge Rudolph Contreras said that Xiaomi can win a full reversal as litigation unfolds and issued an initial injunction to prevent the company from “irreparable harm”.

Globally, Xiaomi is the third largest Smartphone Maker in the world by volume, surpassing Apple in smartphone sales.

Last November, during the Trump Administration, an order was placed to ban American companies in investing in Chinese firms that are alleged to be controlled by the Chinese Government, which include Huawei and TikTok. The ban was placed for allegations of threatening national security.

Contreras brushed off these concerns, stating that “The court is somewhat skeptical that weighty national security interests are actually implicated here.” There is currently no response from the US Department of Defense

Source: BloombergQuint