Bloomberg reported the launch of a lawsuit against the United States by the Chinese electronics manufacturer Xiaomi. Xiaomi intends to court the US government to cancel its inclusion in the "blacklist", which is called "unconstitutional".
The lawsuit lists US Secretary of Defense Lloyd Austin and Treasury Secretary Janet Yellen as defendants, although they were not in their current positions when Xiaomi was blacklisted by the Donald Trump administration. Austin and Yellen were appointed to their current positions by Joe Biden, who took office as President of the United States on January 20.
Due to the inclusion in the "black" list, American investors are now prohibited from buying securities from Xiaomi. They will also need to get rid of its assets by November 11, 2021. This can have serious consequences for the company. “Xiaomi will face imminent, serious and irreparable damage if the regulation remains in effect and the restrictions are applied,” the company said.
During the Trump administration, Chinese smartphone and networking equipment companies such as Huawei and ZTE were identified as a threat to national security. Ironically, Xiaomi does not sell its smartphones in the US, supplying only a few products to the country, including external batteries and the popular Xiaomi Mi Band fitness tracker.
In commenting on the filing of the claim, Xiaomi made the following statement: “The company complies with the law and acts in accordance with the relevant laws and regulations of the jurisdictions in which it does business. The company reiterates that it provides products and services for civil and commercial use. The company confirms that it is not owned, controlled, or affiliated with the Chinese military, and is not a “Chinese communist military company” as defined by the NDAA. The company will take appropriate measures to protect its interests and the interests of shareholders."
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