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.