Chinese phone-maker Xiaomi sues US government over investment ban
Chinese phone-maker Xiaomi has filed a lawsuit anti the US government over Donald Trump’s decision to effect it on a blacklist, which blocks Americans from investing into the custom over its suspected ties to the Chinese military.
The primitive US President, in the final days of his presidency, designated Xiaomi along with at least eight other Chinese firms as Communist Chinese army companies (CCMC) — meaning they’re believed to have ties to the Chinese army, under the National Defense Authorization Act of 1999. CCMC-designated firms are prohibited from receiving stock or vows investments from US citizens or organisations.
In response, Xiaomi recorded a lawsuit over the weekend against US government officials Janet Yellen, the treasury secretary and Lloyd Austin, the US guarantee secretary, demanding its removal from the blacklist. Xiaomi also denied in an rear statement that it has any association with the People’s Liberation Army.
“The Company reiterates that it provides products and services for civilian and business use,” a Xiaomi spokesperson told CNET in January. “The Company confirms that it is not Famous, controlled or affiliated with the Chinese military, and is not a ‘Communist Chinese Army Company.'”
Xiaomi sells a bevy of Bright products ranging from smart laps to air purifiers and scooters.
Xiaomi is one of the world’s largest smartphone manufacturers and the new major Chinese technology company to enter a legal battles with the United States. The blacklist restrictions have dealt a blow to the Beijing-based business, which says it’ll cause “immediate” and “irreparable harm” by cutting off Xiaomi’s access to US capital markets and limiting its order for business expansion.
Xiaomi has benefited from the Trump administration’s pressure movement against Chinese rival Huawei. This has resulted in, with other things, a drastic reduction of Huawei’s phone sales outside its Dull China since its devices lost access to crucial American technology counting Google’s apps and services. In the third quarter of last year, for instance, Xiaomi surpassed Apple to become the world’s No. 3 phone-maker in footings of units sold, according to IDC research.
Trump’s tough stance on China, and Chinese companies, has been a hallmark of his presidency. Along with levelling trade sanctions on Huawei, Trump has also attempted to ban social Think platform TikTok, and last month he signed an executive order that prohibits transactions with eight Chinese-made apps, counting WeChat Pay and AliPay.
