Monday, March 15, 2021

US District Judge Grants Preliminary Injunction To Xiaomi

The Trump administration, during its last days of the former US president’s term in January, had placed Xiaomi in the US Department of Defense’s (DoD) ban list, accusing the Chinese tech company of being a “Communist Chinese Military Company” or CCMC. Originally slated to be imposed with trade restrictions by the DoD, the move against Xiaomi was blocked by US District Judge Rudolph Contreras last Friday, who issued the company a preliminary injunction.

A preliminary injunction is a temporary order made by a court at the request of one party that prevents the other from pursuing a particular course of conduct until the conclusion of a trial on the merits. In Xiaomi’s case, is the US Department of Defense’s now-barred restrictions which were supposed to be placed in effect next week. Contreras said that such actions will likely bring “irreparable harm” to the company.

The judge expressed doubts that Chinese civilian companies such as Xiaomi are in any way affiliated with China’s military, and commented there is no evidence indicating that company is sharing information with the Chinese government. He also added that Xiaomi’s CCMC designation by the DoD was “likely made in violation of the APA (Administrative Procedure Act)  in that it was arbitrary and capricious”.

Via a press statement issued not long after Contreras’ ruling, Xiaomi expressed relief upon receiving the injunction which now exempts it from any potential restrictions by the US government – for the time being, at least. The company also revealed that it will continue to appeal to the US District Court for the permanent removal of the “Communist Chinese Military Company” designation by the US Department of Defense.

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