Xiaomi’s recent executive order ban by Former United States President Donald Trump has been revoked. The smartphone manufacturer was banned from interacting with United States companies in business ventures by the former President in his last few days of term.
Xiaomi has announced on Twitter that the company has been granted a preliminary injunction in the US. Effective last Saturday, the injunction has made it possible for the company to receive investment from the US again.
Why was Xiaomi banned?
In the last days of Trump’s presidency, Xiaomi was branded as a “Communist Chinese military company”. Accused of selling United States customer information to the Chinese government, the Trump Administration banned the company.
Trump’s executive order stated that the company “exploits United States investors to finance the development and modernisation of its military.” Much like the former president’s actions against Huawei, these actions were enforced to decrease Chinese products in the US.
Why was the ban revoked?
Xiaomi was unbanned under the knowledge that former President Donald Trump claims had no basis in fact. U.S. District Judge Rudolph Contreras doubted Xiaomi’s threat to the United States and stated that there’s no evidence of the company reporting to the Chinese government.
The company is still requesting for its designation as a Communist Chinese Military Company to be removed. Xiaomi states that the resignation is “arbitrary and capricious”. Furthermore, the designation as a CCMC harms the company's prospects.
Despite this, the company is still hoping to work alongside global partners to increase its output of technology. Currently, the company is known for smartphones and Smart TVs, but they wish to expand into the future.