Xiaomi is reportedly taking the US Defense and Treasury departments to court for blacklisting it in the US after the Donald Trump administration claimed that Xiaomi is a ‘communist Chinese military company’. The US Defense Department recently claimed that Xiaomi is ‘affiliated with the People’s Liberation Army’ and the outgoing president Donald Trump announced that American should divest themselves from investing in nine Chinese firms which includes Xiaomi and Huawei. As per the blacklist, all American investors need to sell their investments in Xiaomi by November 11, 2021.
Xiaomi in its defence said that the blacklisting was “unconstitutional”, as per a report by Bloomberg.
“Xiaomi faces imminent, severe, and irreparable harm if the Designation remains in place and the restrictions take effect,” the company said in the filing in the U.S. district court of Columbia, as per the report by Bloomberg. The report claimed that Xiaomi has also named Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen as defendants.
The US department of Defense said in a press release earlier, “The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities.”
Xiaomi in its reply said, “The Company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The Company reiterates that it provides products and services for civilian and commercial use. The Company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not a “Communist Chinese Military Company” defined under the NDAA. The Company will take appropriate course of actions to protect the interests of the Company and its shareholders.”