People pass a Xiaomi store in Beijing on January 15, 2021, as the company’s shares collapsed on January 15 after the United States blacklisted the smartphone giant and a number of other Chinese companies.
Greg Baker | AFP | Getty Images
In a ruling Friday, U.S. District Judge Rudolph Contreras gave Xiaomi a preliminary ruling against the Trump-era order. The judge said that, without exemption, Xiaomi will “suffer irreparable damage in the form of serious reputations and irrecoverable economic damage.”
Contreras wrote that there was “clearly a lack of substantial evidence to adequately support the finding that Xiaomi is a CCMC.”
Xiaomi said it was “satisfied” with the ruling and said it would “continue to ask the court to declare the designation illegal and permanently remove the designation.”
“Xiaomi reiterates that it is a widely managed, publicly traded, independently managed corporation that offers consumer electronics exclusively for civil and commercial use,” the company said in a statement on Saturday.
“Xiaomi believes that the decisions to designate it as a Chinese communist military company are arbitrary and capricious, and the judge agrees. “