Type to search

DC judge halts ban on US investment in China’s Xiaomi

(ATF) A Washington DC federal judge on March 12 temporarily blocked the US Department of Defense from restricting investment in Chinese smartphone maker Xiaomi.

Officials in mid-January added Xiaomi and eight other firms to a list of what it calls Communist Chinese Military Companies (CCMC) that requires American investors to divest their holdings.

Xiaomi in late January filed a complaint seeking to be removed from the list, and US District Judge Rudolph Contreras put a temporary halt to the ban for Xiaomi.

“The Department of Defense’s CCMC designation process as to Xiaomi was deeply flawed and failed to adhere to several different … requirements,” Contreras wrote in a 26-page opinion seen by Asia Times Financial.

Contreras said Xiaomi was likely to win a full reversal of the ban as the litigation unfolds. “The court concludes that plaintiffs are highly likely to succeed on the merits… fulfilling the first preliminary injunction requirement.”

The judge said he doubted the US government’s claim that the ban was in the national interest. 

“The court is somewhat sceptical that weighty national security interests are actually implicated here,” he wrote.


Blacklisted China Telecom moves to raise cash in Shanghai

Biden delay on China military-linked firms leaves US investors in limbo

Xiaomi launches ‘flagship killer’ phone into Western markets

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


AF China Bond