If district judge Rudolph Contreras had not issued an injunction, the ban would have come into effect on Monday, according to court documents.
Xiaomi’s shares soared up to 12% on Monday in Hong Kong. The stock lasted more than 7%, on its way to its best day since December.
The court “is somewhat skeptical that important national security interests are actually involved here,” Contreras said in his opinion on Friday, adding that the court supported Xiaomi’s argument that the ban would cause “irreparable damage” to the company. by inflicting “serious damage to reputation and unrecoverable economic damage.”
Xiaomi said on Sunday in a document to the Hong Kong stock exchange that he was “satisfied” with the decision to temporarily lift the ban and said he would continue to pressure the court to permanently withdraw from the Department of Defense list.
The Department of Defense did not respond outside of US business hours to a request for comment on the next steps in the case.
In the weeks before Biden’s inauguration, the Trump administration stepped up its campaign against Chinese corporations. 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 Nasdaq. Luokung was also due to halt negotiations on Monday, but the company announced last week that its suspension was postponed to May because the Department of Defense erred in the name of the company when it was added to the agency’s list.