Xiaomi has filed a lawsuit in opposition to the US Division of Protection and Treasury.
In a official announcement signed by President Lei Jun, the corporate notes that the US authorities’s choice to contemplate it a “Chinese language communist army firm” was “objectively incorrect.” The chief asks the Court docket of the District of Columbia to declare the choice “unlawful and unconstitutional” and revoke it.
The dispute follows Xiaomi’s earlier assertion on January 15, wherein it said that it complies with all related legal guidelines and laws.
Xiaomi, nonetheless, has not been added to the identical checklist of restricted corporations as Huawei. Huawei is on an inventory of America’s Most Dangerous Entities, stopping them from doing enterprise with American corporations. Within the case of Xiaomi, if the restriction is maintained, will probably be vital for US institutional buyers to promote their stakes within the firm earlier than November.
Xiaomi additionally wrote to Biden’s designated protection secretary Lloyd Austin and Treasury Secretary Janet Yellen saying that the funding restrictions would trigger “quick and irreparable harm.”