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Xiaomi Sues the US Government Over Military Blacklist Row
Xiaomi Corp filed a complaint in a Washington district court on Friday against the U.S. Defense and Treasury Departments, seeking to remove the Chinese smartphone maker from an official list of companies with ties to China’s military. The Defense Department, under the Trump administration in mid-January, added Xiaomi and eight other companies to the list, which requires American investors to divest their holdings in the firms by a set deadline. In the complaint, addressed to Biden-appointed Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen, Xiaomi called the judgment “unlawful and unconstitutional” and said the company was not controlled by the People’s Liberation army. It added that the investment restrictions, which go into effect on March 15, 2020, would cause “immediate harm.
It adds that the supposed “public association” with military, if existed, will only damage the company’s reputation with its partners. Speaking of which the company says that a significant number of shareholders are from the U.S whose strategic relationship is critical to grow in a competitive market. Although Xiaomi can still import U.S technology without a license unlike Huawei or DJI that are on the Entity List, it says that an immediate restriction on investment will cause irreparable harm to the company. Let’s wait and see how US Govt responds to this in the coming days.
Xiaomi Corp filed a complaint in a Washington district court on Friday against the U.S. Defense and Treasury Departments, seeking to remove the Chinese smartphone maker from an official list of companies with ties to China’s military. The Defense Department, under the Trump administration in mid-January, added Xiaomi and eight other companies to the list, which requires American investors to divest their holdings in the firms by a set deadline. In the complaint, addressed to Biden-appointed Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen, Xiaomi called the judgment “unlawful and unconstitutional” and said the company was not controlled by the People’s Liberation army. It added that the investment restrictions, which go into effect on March 15, 2020, would cause “immediate harm.
It adds that the supposed “public association” with military, if existed, will only damage the company’s reputation with its partners. Speaking of which the company says that a significant number of shareholders are from the U.S whose strategic relationship is critical to grow in a competitive market. Although Xiaomi can still import U.S technology without a license unlike Huawei or DJI that are on the Entity List, it says that an immediate restriction on investment will cause irreparable harm to the company. Let’s wait and see how US Govt responds to this in the coming days.
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