After the ban in the Trump era Xiaomi breathed a sigh of relief
After the ban in the Trump era Xiaomi breathed a sigh of relief

Xiaomi's stock price soared on Monday in Hong Kong after a US judge temporarily blocked the administration of former President Donald Trump from barring Americans from investing in Chinese smartphone manufacturers.

Xiaomi's share price rose more than 10% at the start of the session, its biggest intraday gain in nearly a month, but it has trimmed earnings since then and the stock is still rising. “About 8% at the start of the session.

In January, the Trump administration selected Xiaomi one of many Chinese military companies, leading to financial restrictions that will take effect next week.

This means that the world's third-largest smartphone maker passed a law in November to prevent US investors from purchasing shares or related securities for a company under the US Department of Defense name.

After the ban was announced, the smartphone maker faced the possibility of withdrawing from the US stock exchange and removing it from the global standard, reducing its market value by $ 44 billion.

At the time, Xiaomi said: He is not a member of the Chinese army, is not under the control of the Chinese army, and does not belong to the Chinese army, so he filed a lawsuit to cancel the classification and end the investment ban.

In a ruling released on Friday, US District Court Judge Rudolf Contreras (Rudolf Contreras) issued an injunction against Xiaomi against Trump's era orders.

The judge said: If there is no support, Xiaomi may incur huge, irreparable economic losses.

Contreras wrote that there does not appear to be enough evidence to support the discovery that Xiaomi is a military company of the Chinese Communist Party.

Xiaomi said: It is satisfied with this decision and continues to urge the court to declare the classification illegal and to permanently remove the label.

"Xiaomi has reiterated that it is a widespread, publicly traded, independently owned company that supplies only consumer electronic devices for civil and commercial use," the company said in a statement.

She added: Xiaomi believes that the decision to classify it as a military company affiliated with the Chinese Communist Party is arbitrary and variable.

The judge supported the Chinese company in this lawsuit. The company deemed the decision arbitrary and variable and deprived it of its procedural rights.

Xiaomi was founded by a billionaire businessman (Lei Jun). Xiaomi has been the third largest smartphone maker in the world for more than a decade, and its smartphone sales surpassed Apple in the third quarter.

Xiaomi's move could pave the way for more companies to question the limits of the Trump era, as NGOs like Huawei are likely to win similar lawsuits.

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