Xiaomi Files Legal Complaint Against US Defence, Treasury Ban

Xiaomi was added by the Trump administration to its list of companies with ties to China’s military.

Xiaomi Files Legal Complaint Against US Defence, Treasury Ban

Photo Credit: Reuters

Xiaomi is seeking to remove its name from the official list of companies with ties to China's military

Highlights
  • Xiaomi called the US judgment "unlawful and unconstitutional"
  • The company claimed there is no military control
  • Xiaomi underlined "substantial number" its shareholders were US persons

Xiaomi filed a complaint in a Washington district court on Friday against the US Defense and Treasury Departments, seeking to remove the Chinese smartphone maker from an official list of companies with ties to China's military.

The US 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 and irreparable harm to Xiaomi."

Xiaomi said 75 percent of the company's voting rights, under a weighted structure, were held by co-founders Lin Bin and Lei Jun, with no ownership or control from an individual or entity affiliated with the military.

It added that a "substantial number" of its shareholders were US persons, and noted three of its top-ten holders of ordinary shares were US institutional investment groups.

"The company's strategic relationships with US financial institutions - critical for Xiaomi to continue to access the capital it needs to continue to grow in a highly competitive market - will be significantly damaged," the complaint stated.

"Moreover, the public association of Xiaomi with the Chinese military will significantly impair the company's standing with business partners and consumers, causing reputational harms that cannot be readily quantified or easily repaired."

The US Department of Defense and the Treasury Department did not immediately respond to requests for comment.

© Thomson Reuters 2021


Is Mi 10i a OnePlus Nord killer? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Microsoft Teams May Receive Improvements for Desktop App to Cut Down on RAM, CPU Usage
GameStop's Reddit Rally Puts Scrutiny on Social Media Forums

Related Stories

Share on Facebook Tweet Snapchat Share Reddit Comment
 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2021. All rights reserved.
Listen to the latest songs, only on JioSaavn.com