A federal decide has blocked the US Division of Protection from putting restrictions on Chinese language smartphone maker Xiaomi that had been set to take impact subsequent week.

Simply earlier than former President Trump left workplace in January, the DoD designated Xiaomi as a “Chinese Communist military company,” (CCMC) making it topic to Trump’s government order banning the US from investing in such firms. However late Friday, U.S. District Choose Rudolph Contreras issued a preliminary injunction to stop what he known as “irreparable harm” to Xiaomi, saying the designation was “arbitrary and capricious.”

Xiaomi mentioned in courtroom filings it could undergo “extreme and irreversible damage” to its enterprise and repute if the restrictions took impact, and has maintained it operates “in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses.” An organization spokesperson told The Verge in January that Xiaomi “is not owned, controlled or affiliated with the Chinese military, and is not a ‘Communist Chinese Military Company.’”

In his Friday ruling, Contreras known as into query the Trump administration’s argument that “civilian Chinese companies” like Xiaomi enable the Chinese language authorities to “directly threaten the United States homeland.”

“The court is somewhat skeptical that weighty national security interests are actually implicated here,” the decide wrote.

Xiaomi said in a statement that it’s going to proceed to request that the CCMC designation be completely eliminated.

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