Xiaomi To Sue US Government For Investment Ban

The Chinese technology company Xiaomi is trying to escape and is taking two US ministries to court in the USA. The aim is to have the investment ban imposed by the last government lifted.

The Trump administration blacklisted Xiaomi in its last few days. The Ministry of Defense stated here that the company had close ties with the Chinese military. As a result, US companies were prohibited from investing in the group and holding shares, as this would be interpreted as support for a hostile military power.

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In their lawsuit, Xiaomi’s lawyers state that the company will suffer immediate, serious and permanent damage if the listing remains in force and the resulting measures take effect. It is, therefore, requested that Xiaomi be removed from the blacklist, the US news agency Bloomberg reports. The lawsuit is also directed against the new Secretary of Defense Lloyd Austin and Treasury Secretary Janet Yellen, who has just been sworn in as members of the new Biden government.

Nothing to do with it

“Xiaomi is neither owned nor controlled by the Chinese government, the military or any entity in the Chinese defense industry,” the complaint said. Accordingly, the listing of the company is seen as a purely arbitrary measure, which in the end can even be classified as unconstitutional.

Xiaomi’s institutional investors include US companies such as BlackRock, the Vanguard Group and State Street. The chipmaker Qualcomm was one of the earliest donors. Should these be forced to sell all of their shares in the coming months, one can assume that Xiaomi’s share price will plummet.