Install app via usb: The device is temporarily restricted

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“Install via USB” wont work if your Xiaomi phone is running MIUI 8 or above. Looks like when you try to Enable this option, your phone trys to connect to some chinese server and fails.

I got a work around and it worked for me. Idea is to connect to Chinese-Shanghai server through VPN. Try the following:

  1. Install PlexVPN from Playstore and login into it. You will get a 24 hr free VPN service.
  2. Select China-Shanghai server and connect.
  3. From developer option in your Xiaomi phone, Enable “Install via USB”.
  4. You can then disconnect the VPN and logout from PlexVPN.

Enjoy!!

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