Xiaomi Corp sued the US Protection and Treasury departments, defying a blacklist that stops US buyers from shopping for the Chinese language smartphone large’s securities.
The lawsuit got here after the Protection Division decided earlier this month that China’s largest smartphone maker was affiliated with the Individuals’s Liberation Military. Beijing-based Xiaomi referred to as the blacklist “unconstitutional” and is looking for a courtroom ruling to reverse the designation, which was made within the last days of the Trump administration.
“Xiaomi faces imminent, extreme and irreparable hurt if the Designation stays in place and the restrictions take impact,” the corporate stated within the submitting with the US District Courtroom of Columbia. The lawsuit additionally named the Clerk of Protection, Lloyd Austin, and Secretary of the Treasury, Janet Yellen, as defendants.
Beneath former President Donald Trump, the US had focused dozens of Chinese language tech corporations citing nationwide safety. Huawei Applied sciences Co, certainly one of Xiaomi’s greatest rivals within the smartphone market, was reduce off from its key suppliers because of a sequence of restrictions imposed by the earlier administration. Chinese language chipmaking large Semiconductor Manufacturing Worldwide Corp and Shenzhen-based drone maker SZ DJI Know-how Co are additionally among the many corporations which were blacklisted.
BlackRock Inc, Vanguard Group Inc and State Road Corp are among the many most important US institutional buyers in Xiaomi that will be compelled to divest stakes within the firm in November, based on US chipmaker Qualcomm Inc was additionally an early investor. at Xiaomi, which was co-founded by billionaire Lei Jun a decade in the past. Xiaomi shares fell 12% in January after hitting all-time highs within the first week of the 12 months.
“Xiaomi isn’t owned or managed or in any other case affiliated with the Chinese language authorities or navy, neither is it owned or managed by any entity affiliated with the Chinese language protection industrial base,” the smartphone maker stated on the presentation.