Photographer: Qilai Shen / Bloomberg
Photographer: Qilai Shen / Bloomberg
Xiaomi Corp. sued the U.S. Defense and Treasury departments, challenging a blacklisting that barred American investors from buying Chinese phone giant securities.
The lawsuit came after the Department of Defense ruled earlier this month that China the largest smartphone maker was affiliated with the People’s Liberation Army. Beijing-based Xiaomi called the blacklist “non-legislative” and is seeking a court ruling to overturn the designation, which was done in the narrow days of the Trump administration.
“Xiaomi suffers imminent, imminent and irreversible damages if the Specification continues to apply and the restrictions are lifted,” the company said. filed in U.S. district court in Columbia. The lawsuit also named Defense Secretary Lloyd Austin and Finance Secretary Janet Yellen as defendants.
Under former President Donald Trump, the U.S. had summoned scores of Chinese tech companies citing national security. Huawei Technologies Co., one of Xiaomi’s biggest competitors in the smartphone market, has been cut off from the major suppliers due to a series of restrictions imposed by the administration. Chinese chip making giant Semiconductor Manufacturing International Corp., a drone manufacturer based in Shenzhen Tha SZ DJI Technology Co. also among the blacklisted companies.
BlackRock Inc., the Vanguard Group Inc. and State Street Corp. among the top American institutional investors in Xiaomi that had to hold on to the company before November, according to the leak. U.S. chipmaker Qualcomm Inc. also as one of Xiaomi’s earliest investors, co-founded by billionaire Lei Jun ten years ago. Xiaomi shares fell 12% in January after reaching high levels in the first week of the year.
“Xiaomi is not owned, controlled or otherwise affiliated with the Chinese government or military, and is not owned or controlled by any organization affiliated with China’s defense business center,” the smartphone maker said. .
– Supported by Shiyin Chen, Yuan Gao, and Joe Schneider