In the final days of Donald Trump's presidency, the government tried to leave another mark by following up the Huawei and ZTE bans with another one, this time aimed at Xiaomi. However, the company was able to get a preliminary injunction from the US District Court for the District of Columbia, removing the restrictions on the business a week before they were scheduled to go into effect.
Under the authority of Section 1237 of the National Defense Authorization Act, Xiaomi originally was not going to be allowed to acquire goods and services from US vendors starting next week, similar to many other Chinese companies. But according to Bloomberg, the district court moved to put a temporary halt on the ban, saying that it was "arbitrary and capricious" and that it could cause "irreparable harm" to the business. Judge Rudolph Contreras went as far as saying that "the court is somewhat skeptical that weighty national security interests are actually implicated here," and that it was likely that Xiaomi would win a full reversal of the ban.
— Xiaomi (@Xiaomi) March 14, 2021
While this is an initial win for Xiaomi, the company is still working on having the court permanently remove its designation as a "Communist Chinese Military Company," which it deems unlawful. It has again and again reiterated that it's a "publicly traded and independently operated" corporation offering products "solely for civilian use."
Xiaomi has yet to win the full reversal of the ban, but given the positive outlook, it's pretty unlikely that it will end up with the same restrictions as Huawei.