Had U.S. district judge Rudolph Contreras not issued a preliminary injunction, the ban would have come into effect Monday, according to court documents.
Shares of Xiaomi were up a whopping 12% in Hong Kong on Monday. The stock was last up more than 7%, on track for its best day since December.
The court “is somewhat skeptical that weighty national security concerns are actually involved,” Contreras said in his opinion on Friday, adding that the court supported Xiaomi’s argument that the ban would cause “irreparable harm” to the company by inflicting it. of “serious reputational damage and irreparable business. economic injuries.”
Xiaomi said in an application to the Hong Kong stock exchange on Sunday that it is was “satisfied” with the decision to temporarily suspend the ban, saying it would continue to urge the court to remove itself permanently from the Defense Department list.
The Department of Defense did not respond outside US office hours to a request for comment on the next steps in the case.
In the weeks before Biden took office, the Trump administration stepped up its campaign against Chinese companies. In addition to Xiaomi, the Pentagon added eight other companies to its list in mid-January, including Luokung Technology, a Chinese mapping software developer listed on the Nasdaq. Luokung was also set to stop trading on Monday, but the company announced last week that the suspension had been delayed until May because the Department of Defense misspelled the company’s name when it was first added to the agency’s list.