A US federal judge has decided to suspend the ban on investing in the Chinese mobile phone giant Xiaomi, considering the US government’s argument about its ties to the Armed Forces and the Chinese government “deeply flawed”. In practice, this means that Xiaomi is removed from the blacklist of Chinese technology companies that put national security at risk.
The federal judge of the District of Columbia Rudolph Contreras has considered that the decision of the veto, imposed by the administration of Donald Trump in January, which linked Xiaomi with the Chinese Army, was not properly founded and considers it unproven and therefore remains suspended.
For his part, and he has assured that he will continue to seek the permanent dismissal of the ban on investing in the company, which forced it to stop selling shares of the technology company in the United States and to ask all its investors in the US jurisdiction to get rid of their titles. before one year was up.
“Xiaomi is a company that manufactures products for civilian use and is controlled by an independent board and by shareholders and is not effectively controlled by or associated with entities under the control of the Government of the People’s Republic of China or its security services” , has indicated the judge in his opinion.
An argument with feet of clay
The Pentagon had based Xiaomi’s alleged links with the Chinese government on the delivery of a Chinese state award, but the judge considers that this is not a sufficient reason, since this award has been received by hundreds of entrepreneurs and is becoming standard in the technology sector.
Xiaomi is one of the victims of , which focuses on determining the future in the domination of the strategic semiconductor or telecommunications sectors globally.
Huawei or TikTok, other victims of Trump
The Chinese telecommunications giant Huawei was the main focus in the attempts of the Donald Trump Administration, which culminated on January 20, to limit the influence of Chinese technology companies in the country and for this reason it was the object of prohibitions to trade and operate, especially with regard to 5G mobile technology.
The TikTok social network, owned by the Chinese ByteDance, was another of Trump’s targets due to the potential use that the Chinese government could make of private information or the influence of this video platform in the United States.
For now, the actions against TikTok appear unlikely to lead to a ban or sale of its assets to a US investor, as Trump threatened, and Huawei is also scoring small legal victories against its ban.
The Administration of Democrat Joe Biden has remained in the background in this legal battle and has suggested that it will not move until it negotiates the framework of relations with China with its allies.
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