The
Defense Department, under the Trump administration in
mid-January, added Xiaomi and eight other firms to a list that
requires Americans to sell their interests in the firms by a
deadline. The restrictions were set to go into effect next week.
Xiaomi in late January filed a complaint in a Washington court
seeking to be removed from the list, calling its inclusion
"unlawful and unconstitutional" and arguing it was not
controlled by the People's Liberation Army.
U.S. District Judge Rudolph Contreras in Washington, D.C., said
on Friday that the court "concludes that defendants have not
made the case that the national security interests at stake here
are compelling."
The Defense Department did not immediately respond to a request
for comment.
In a statement, a Xiaomi spokesperson welcomed the ruling and
called the designation of Xiaomi as a Chinese military company
"arbitrary and capricious."
"Xiaomi plans to continue to request that the court declare the
designation unlawful and to permanently remove the designation,"
the spokesperson said.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by
Cynthia Osterman, Sonya Hepinstall and Gerry Doyle)
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