Earlier on Friday, a US federal judge temporarily blocked a ban on investment in Xiaomi put in place by the Defense Department over alleged ties between the China-based phone maker and that country’s military.
In the memorandum accompanying his order to suspend the ban, US District Judge Rudolph Contreras wrote, “The US’ national security priorities are undoubtedly compelling government interests. However, the court is somewhat skeptical that weighty national security interests are actually implicated here.”
In case you didn’t know, earlier in January, the Defense Department officially added Xiaomi to its list of “Communist Chinese military companies.” As a result, the smartphone manufacturer was prohibited from receiving investments from US citizens or organizations and that existing investors would need to divest.
At the time, Xiaomi said that the Defense Department ban will cause “immediate” and “irreparable harm” by cutting off its access to US capital markets and limiting its ability for business expansion.