Apparently, US officials blacklisted Chinese smartphone giant Xiaomi as a company with military ties because the company’s founder received an award from the state for his services.

The award for being "Outstanding Builder of Socialism with Chinese Characteristics" in 2019 from the Ministry of Industry and Information Technology apparently proves that he has military ties.

Xiaomi touts the award -- given to 100 Chinese executives that year -- on Lei's biography page on the company's website and in its annual report.

This award and the fact that Xiaomi's ambitious investment plans in advanced technologies such as 5G and artificial intelligence was enough for the Defense Department in January to add Xiaomi to a list of companies that support China's military, according to a court filing.

The designation prohibits Americans from investing in the company, the world's third-largest smartphone seller. The US rationale for adding Xiaomi to its list was laid out in a court filing by the Defense Department in response to a lawsuit in US District Court in Washington, DC by the Chinese company seeking to overturn the military designation.

The filing, which appeared last week but has not previously been reported, for the first time shed light on the department's reasoning in adding the company to the list.