In a Friday ruling, U.S. district judge Rudolph Contreras granted Xiaomi a preliminary injunction against the Trump-era order. The judge said that without relief, Xiaomi would “suffer irreparable harm in the form of serious reputational and unrecoverable economic injuries.”

Contreras wrote there is “plainly a lack of substantial evidence to adequately support a finding that Xiaomi is a CCMC.”

Xiaomi said it was “pleased” with the ruling and said it will “continue to request that the court declare the designation unlawful and to permanently remove the designation.”

“Xiaomi reiterates that it is a widely held, publicly traded, independently managed corporation that offers consumer electronics products solely for civilian and commercial use,” the company said in a statement on Saturday.

“Xiaomi believes that the decisions of designating it as a Chinese Communist Military Company are arbitrary and capricious, and the judge agrees with it.”