Xiaomi US ban blocked in court - could Huawei be next?

US investors will be allowed to retain shares in Xiaomi

When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

A United States federal court has halted aban issued by the Trump administrationthat blocked investment in Chinese mobile giant Xiaomi.

US District Judge Rudolph Contreras sided with Xiaomi in her decision, which came after the Chinese firm said the investment ban  was “unlawful and unconstitutional” and would cause it “irreparable harm”.

Contreras stated that the original decision was “arbitrary and capricious", and hinted that Xiaomi could stand to win a full reversal of the ban as the litigation unfolds.

Reversal

Xiaomi’s complaint came after it was added to the US blacklist of companies suspected of having ties to the ruling Chinese Communist Party by the Trump administration back in January.

This blocked any US individuals or companies from investing in Xiaomi, which counts technology backers such as Qualcomm alongside financial giants including Vanguard Group and BlackRock as existing investors.

Ina statement, Xiaomi said that it is a “young and energetic tech company” that is publicly traded and independently operated.

Xiaomi, which recently pippedAppleto become the third-largest smartphone maker in the world, saw its shares climb over 10% in the Hong Kong exchange following the news.

Are you a pro? Subscribe to our newsletter

Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!

pic.twitter.com/MjYujUXAkhMarch 14, 2021

Xiaomi is not the only company that has faced the brunt of former President Trump’s banning spree. Huawei and ZTE were also placed on the blacklist, alongside Chinese mobile applications WeChat and TikTok, citing threats to national security.

Xiaomi has been the only company to overcome sanctions so far, with Huawei facing additional limitsfrom the Biden administration that further restrict US companies from supplying components for its 5G devices.

Biden’s presidential election victory had increased hopes of a reprieve, but comments from his nominee for Commerce secretary earlier this year suggested there would be no change in policy.

Jitendra has been working in the Internet Industry for the last 7 years now and has written about a wide range of topics including gadgets, smartphones, reviews, games, software, apps, deep tech, AI, and consumer electronics.

TP-Link Archer BE3600 Wi-Fi 7 Router review

Ulefone Armor Pad 3 Pro rugged tablet review

Arcane season 2 finally gave us the huge Caitlyn and Vi moment we’ve been waiting for – and its creators say ‘we couldn’t have done it in season one’