Xiaomi Challenges US Ban as “Unlawful and Unconstitutional”

Xiaomi hits back!

Xiaomi was listed in the US among the list of Chinese military-backed companies, which prevent US investors from backing the firm. A new Reuters report says the company is now hitting back by filing a legal complaint in Washington against the US Defense and Treasury Departments.

Xiaomi defends itself as not controlled by the Chinese army, calling the ruling “unlawful and unconstitutional.” The Chinese tech company also said the listing would result in “immediate and irreparable harm to” them.

According to the legal document, Xiaomi says a “substantial number” of its investors are from the US. Three US investment groups are among the top-ten holders of the company’s ordinary shares.

It also argued that association with the “Chinese military will significantly impair the company’s standing with business partners and consumers.”

The company also talked of the need for continued access to capital from the US to continue growing.

Before seeding office, the Trump administration added Xiaomi and Comac, a Chinese plane maker, with seven other Chinese firms to its list of companies with alleged ties to its army.

The investment restrictions will go into effect from March 15th, 2021, but existing US investors in Xiaomi and affected companies have until November 11th, 2021, to divest their equity.

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Alvin Wanjala

Alvin Wanjala has been writing about technology for over 2 years. He writes about different topics in the consumer tech space. He loves streaming music, programming, and gaming during downtimes.

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