U.S. Court Reverses Trump Ban on Xiaomi
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Smartphone giant Xiaomi has been awarded a temporary block for its ban over links with the Chinese military, citing the original move as «arbitrary and capricious».
U.S. District Judge Rudolph Contreras issued a temporary halt to the ban, claiming that Xiaomi was deprived of the rights for due process and that Xiaomi was likely to win a full reversal of the ban.
The court is somewhat skeptical that weighty national security interests are actually implicated here, said Contreras on the originally stated concerns by the former administration when issuing the ban.
In response, Xiaomi will look to continue to request that the court declare its blacklisting as unlawful and permanently remove the designation, according to a statement from the Chinese smartphone company.
Since Joe Biden took over the White House, an increasing number of firms have pushed back against bans issued by the former Trump administration.
In addition to Xiaomi, Chinese data firm Luokung Technology said it would sue the U.S. government earlier this month over what it described as an unjustified ban while Boston-based State Street Global Advisors reversed an initial decision against investing in sanctioned entities in the renowned ‘Tracker Fund’ in Hong Kong.
Questions & Answers
Q.What was the U.S. District Judge's primary reason for blocking the ban on Xiaomi?
What was the U.S. District Judge's primary reason for blocking the ban on Xiaomi?
U.S. District Judge Rudolph Contreras issued a temporary halt to the ban, claiming Xiaomi was deprived of due process rights. He also stated that the court was skeptical about the national security concerns implicated by the ban.
Q.What is Xiaomi's next step following this court decision?
What is Xiaomi's next step following this court decision?
Xiaomi plans to continue its efforts to have the court declare its blacklisting as unlawful. The company will request the permanent removal of the designation in the future.
Q.Are other companies challenging similar bans issued by the previous U.S. Administration?
Are other companies challenging similar bans issued by the previous U.S. Administration?
Yes, other firms have pushed back against bans since Joe Biden became president. Chinese data firm Luokung Technology is suing the U.S. Government over its own ban.
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