Chinese tech giant Xiaomi sues Pentagon & US Treasury, demanding removal from blacklist linking it to Beijing’s military

One of the largest global smartphone makers, China’s Xiaomi, has filed a legal complaint in a US court, urging the government to strike it from a blacklist of firms allegedly tied to China’s military while denying any such links.

Xiaomi demanded that it be removed from the list on Friday, telling a Washington, DC district court that the decision to put it there was “unlawful and unconstitutional,” Reuters reported. It insisted it had no connection to the People’s Liberation Army, pointing to a “substantial number” of American citizens that have major stakes in the company, with US-based financial firms making up three of its top 10 investors.

The company was added to the blacklist along with eight other firms last month in the waning days of the Donald Trump administration, which required all American investors to pull their money out of the companies by a deadline of November 11, 2021.

Addressed to US President Joe Biden’s nominees to lead the Pentagon and the Treasury, Lloyd Austin and Janet Yellen, the complaint also said the investment ban would cause “immediate and irreparable harm to Xiaomi.”

“The company’s strategic relationships with US financial institutions – critical for Xiaomi to continue to access the capital it needs to continue to grow in a highly competitive market – will be significantly damaged,” the court filing said.

“Moreover, the public association of Xiaomi with the Chinese military will significantly impair the company’s standing with business partners and consumers, causing reputational harms that cannot be readily quantified or easily repaired.”

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