On March 12 (local time), the Washington Federal Court ordered a temporary ban on matters that the U.S. Department of Defense designated Xiaomi as a Chinese military-related company and added it to the investment ban blacklist.
The U.S. Department of Defense designated nine companies, including Xiaomi, as companies related to the People’s Liberation Army in January, just before the regime change. Therefore, the investor was obligated to sell the company’s stock by November. For Huawei, where commerce itself is limited, the situation is different, but the blacklist is likely to be a big disadvantage for Xiaomi, and the stock price fell by more than 10% immediately after the announcement.
Xiaomi is suing the US government that the designation is illegal and unconstitutional. Reportedly, the trial itself continues, and the court judge admits Xiaomi’s appeal that adding to the blacklist is an arbitrary whim, and the company suffers irreparable damage, taking into account the possibility that Xiaomi will win during the trial. He said he had ordered a ban to prevent seeing.
Xiaomi has issued a statement and continues to demand that the designation as a military-related company be permanently deleted. Related information can be found here.