A United States federal judge overturned the country’s Department of Defense mandates regarding the activities of Chinese manufacturer Xiaomi. With the new order, the electronics company is no longer considered a “threat to national security” and will not suffer commercial sanctions or limitations on operations within the United States.
The court ruled that “there is a certain skepticism that national security interests are involved” in the brand’s performance. As a result, trade barriers that would be applied starting next week will no longer have an effect, including a ban on the acquisition of shares by US investors.
According to the determination of district judge Rudolph Contreras, the decision to classify the brand was “arbitrary and unstable”, with the possibility of causing irreparable damage to the company.
Relief
In a note, Xiaomi commemorated the judge’s decision and reinforced its own innocence. In one of his last acts, former President Donald Trump labeled the company as a “communist military company”, with the manufacturer filing a lawsuit against the government to defend itself.
It was added to a list of Chinese companies with possible ties to the government and, therefore, used for espionage maneuvers – allegations very similar to those that led Huawei to lose contracts and weaken in the smartphone sector.
