Xiaomi sues US government over Chinese military blacklist inclusion

The Chinese smartphone giant Xiaomi Corporation has announced taking legal actions against the US government over its inclusion on an investment blacklist.

The Trump administration has added Xiaomi and eight other Chinese firms to the US blacklist of alleged Chinese military companies. The said inclusion to the blacklist would block Americans from investing in them. Xiaomi, then, denies the allegations of having any such connections. Xiaomi has also released a clarification statement, indicating that Xiaomi is not owned, controlled, nor affiliated with the Chinese military.

However, the company has recently filed a lawsuit last January 29 against several US government departments and officials. Xiaomi mentioned in its lawsuit that banning US investors from taking stakes in it would “cause immediate and irreparable harm” and affect its global reputation.

“The company’s strategic relationships with US financial institutions – critical for Xiaomi to continue to access the capital it needs to continue to grow in a highly competitive market – will be significantly damaged,” stated in the lawsuit filing.

Meanwhile, in an official announcement signed by Chairman Lei Jun of Xiaomi Corporation, the company remarked that the US administration’s declaration of Xiaomi’s inclusion on the list of Chinese military companies was “factually incorrect.”

“The Company filed proceedings in the United States District Court for the District of Columbia against the Department of Defense and the Department of the Treasury of the United States on January 29, 2021 (Eastern Standard Time). The Company believes that the decision to include the Company as a “Communist Chinese Military Company” under the NDAA by the Department of Defense and the Department of the Treasury of the United States (the “Decision”) was factually incorrect and has deprived the Company of legal due process. With a view to protecting the interests of the global users, partners, employees, and shareholders of the Company, the Company has pleaded to the courts to declare the Decision illegal and that it be reversed.”

Sources: Xiaomi, Lawsuit Filing