"Xiaomi believes that the decision of designating it as a 'Chinese Communist Military Company' is arbitrary and capricious, and the judge agrees with it. Xiaomi plans to continue to request that the court declare the designation unlawful and should be permanently removed," the spokesperson told the news outlet, which is published by the official newspaper of China’s ruling Communist Party.
In a written statement, Xiaomi highlighted that it is a "widely held, publicly traded, independently managed" company that offers products only for civilian and commercial use.
This statement comes after the US Department of Defenсe and Treasury restricted the US investing in the company by accusing Xiaomi of having ties to the Chinese military on Friday.
A week before the end of the presidency of Donald Trump in January, his administration cemented its trade war legacy against Beijing with a series of announcements targeting nine Chinese firms including Xiaomi which was one of the firms classified by the Pentagon as "Communist Chinese military companies (CCMC). "
Xiaomi filed a complaint to a US court in late January seeking to be removed from the list.
The court ruled that the US Department of Defense did not base its determination of Xiaomi as a CCMC on substantial evidence, concluding that the company is not effectively controlled or associated with others under the ownership or control of the Chinese government or its security services.
Judge Rudolph Contreras put a temporary halt to the ban for Xiaomi.
