US court ruling suspends ban on investment in Xiaomi

Federal judge says case not made on national security concerns

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U.S. District Judge Rudolph Contreras said on March 12 that the court "concludes that defendants have not made the case that the national security interests at stake here are compelling." © Reuters

A U.S. federal judge on Friday temporarily blocked the Department of Defense from forcing American investors to divest holdings in Chinese smartphone maker Xiaomi Corp on the grounds the company has ties to China's military.

The Defense Department, under the Trump administration in mid-January, added Xiaomi and eight other firms to a list that requires Americans to sell their interests in the firms by a deadline. The restrictions were set to go into effect next week.

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