News: Court ruling suspends U.S. ban on investment in Xiaomi.
(Reuters) – A US federal judge on Friday temporarily prevented the Department of Defense from forcing American investors to sell stakes in Chinese smartphone maker Xiaomi Corp, as the company has ties to the Chinese military.
The Department of Defense, under the Trump administration in mid-January, added Xiaomi and eight other companies to a list that requires Americans to sell their shares in the companies within a certain period of time. The restrictions should go into effect next week.
In late January, Xiaomi filed a complaint with a Washington court to be removed from the list. She called her recording “illegal and unconstitutional” and argued that it was not controlled by the People’s Liberation Army.
Washington, DC District Judge Rudolph Contreras said Friday that the court “concludes that the defendants have failed to argue that the national security interests at stake are imperative.”
Xiaomi and the Ministry of Defense did not immediately respond to requests for comment.
Reporting by Praveen Paramasivam in Bengaluru; Adaptation by Cynthia Osterman and Sonya Hepinstall
Original Source © Reuters