Back in January, the United States made a huge move in blacklisting Xiaomi from the national investment scene, forcing U.S. investors owning holdings in Xiaomi to divest themselves by November, and prohibiting any further investments. The ban came as a sudden shock after Huawei’s famous fall from grace happened in 2019—especially after it was quickly discovered that Xiaomi’s blacklisting was based on similar suspicions of the firm working in cahoots with the Chinese government.
Xiaomi, which has been vehemently denying any allegations of espionage or ties to the Chinese military, responded to Judge Contreras’ ruling with a statement on Sunday.
Xiaomi is pleased to see that on March 12, EST, the court enjoined DOD from implementing or enforcing the designation of Xiaomi as a CCMC. Pursuant to the injunctive relief granted, the Court removed, in full and with immediate effect, the Executive Order 13959 restriction on U.S. persons to purchase Xiaomi’s securities and the requirement on U.S. persons to divest their holdings.
Xiaomi reiterates that it is a widely held, publicly traded, independently managed corporation that offers consumer electronics products solely for civilian and commercial use.
Xiaomi believes that the decisions of designating it as a Chinese Communist Military Company are arbitrary and capricious, and the judge agrees with it. Xiaomi plans to continue to request that the court declare the designation unlawful and to permanently remove the designation.
Xiaomi is a young and energetic technology company. Over the years, we have offered amazing consumer electronics products such as smartphones and smart TVs with honest prices to consumers all over the world. We are committed to working with our global partners to let everyone in the world enjoy a better life through innovative technology.