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Lawyers familiar with the case have said some Chinese firms are banned in talks with law firms including Steptoe & Johnson and Hogan Lovells, embellished by U.S. District Judge Rudolph Contreras’ commencement order. suspends Xiaomi’s inclusion on the U.S. list of Communist Chinese arms companies that it claims are subject to an investment ban.
The Trump administration’s move to the blacklist of Xiaomi Corp, which put $ 10 billion off its market share and put its shares down 9.5 percent in January, would have forced investors to completely cancel their promises in the company.
“Firms are reaching out to lawyers to challenge the listings and the reasons for the listings,” said Wendy Wysong, managing partner in the Hong Kong office of Steptoe & Johnson, a law firm on worldwide with headquarters in Washington. Wysong and an acquaintance of Hogan Lovells, another global law firm, declined to name the companies involved in negotiations.
Contreras identified the U.S. government’s “deep flawed” process for involving the company in the investment ban, based on just two key criteria: the development of 5G technology and artificial intelligence, which the Department of Defense says it is “vital to today’s military activity,” and an award given to Xiaomi founder and CEO Lei Jun from an organization that said to help the Chinese government remove barriers between commercial and non-commercial sectors. weapons.
The judge noted that 5G and AI technologies were growing rapidly in consumer electronics, and that more than 500 entrepreneurs had received the same award as Lei since 2004, including directors baby formula company.
“The facts that led to Xiaomi’s specification are almost commendable, and I think it’s going to lead to more companies seeking relief,” said Washington lawyer Brian Egan, a former adviser. legal in the White House and the State Department that also works at Steptoe.
CONTROL OF THE PATH FOR
In a joint filing on Tuesday, the government said it had not decided on the “appropriate way forward” in Xiaomi’s case as a result of the judge’s decision.
A spokesman for the U.S. Department of Justice, which is defending the case, declined to comment. A spokesman for the Department of Defense sent questions to the White House, which did not respond.
Xiaomi and 43 other companies were added to this in recent months of the Trump administration’s blacklist, which was mandated by a law in 1999 requiring the Department of Defense to publish a collection of companies “owned or controlled ”With the Chinese military.
Trying to tighten a hard line on China and put a box after Democrat Bomen, Joe Biden, into tough policies, Trump signed an order of action that was subsequently extended to ban investors U.S. from holding securities in the designated companies beginning Nov. 11, 2021.
Other companies listed include video surveillance giant Hikvision, China Coast National Oil Corp (CNOOC) and China’s leading chip maker, Semiconductor Manufacturing International Corp.
SMIC, Hikvision and CNOOC did not immediately respond to requests for comment.
Luokung Technology Corp., a mapping technology company listed, also sued the U.S. government earlier this month, and is expected to receive a similar start-up relief to the one handed over to Xiaomi.
Reciting with Karen Freifeld and Alexandra Alper; Additional statement by Mike Stone; Edited by Peter Cooney