Smartphone giant Xiaomi sues to reverse US blacklisting

Smartphone giant Xiaomi sues to reverse US blacklisting

By

Washington: Chinese smartphone maker Xiaomi said on Sunday that it had filed a lawsuit to overturn the last-minute process of blacklisting the electronics giant by the former Trump administration.

Xiaomi said that the former President Donald Trump’s administration banned investment in the company on Friday, after Xiaomi said it had filed an appeal in Washington Federal Court, saying that the Beijing-based company was part of the Chinese military.

In a statement, Xiaomi said it “believes that the decision … was factually incorrect and has deprived the company of legal due process.”

“With a view to protecting the interests of the global users, partners, employees and shareholders of (Xiaomi), the company has pleaded to the courts to declare the decision illegal and that it be reversed,” the statement added.

Just six days before Trump left office, his officials made a series of announcements targeting Xiaomi and other Chinese firms including state oil giant CNOOC and embattled social media favorite TikTok.

Xiaomi surpassed Apple last year and became the world’s third largest smartphone manufacturer. Xiaomi is one of nine companies listed by the Pentagon as a “Military Company of the Chinese Communist Party.”

This measure is considered an attempt to consolidate Trump’s legacy of trade war with China after four years of turbulent relations with Beijing.

The blacklist means that US investors cannot buy Xiaomi securities.

After being blacklisted, the company’s stock price fell by more than 10%.

You may also like