Xiaomi products on display in January. The company said it was pleased with the judge’s ruling.


Angel Garcia/Bloomberg News

A federal judge has blocked enforcement of the U.S. investment ban on

Xiaomi Corp.

1810 4.12%

, calling the decision to blacklist the Chinese technology giant “deeply flawed.”

Ordering a temporary halt to the ban in a decision late Friday, Judge

Rudolph Contreras

cast doubt on the Pentagon’s decision in January to designate Xiaomi a company with links to the Chinese military. Mr. Contreras said the U.S. failed to convincingly show such links in prior filings with the court.

“Xiaomi is a publicly traded company that produces commercial products for civilian use, is controlled by its independent board and controlling shareholders, and is not effectively controlled or associated with others under the ownership or control of the PRC or its security services,” the judge said in the opinion.

Xiaomi said it was pleased with the judge’s ruling and said it will seek permanent removal of the investment ban. The Pentagon didn’t immediately respond to a request for comment.

(More to come.)

Write to Dan Strumpf at daniel.strumpf@wsj.com

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