Xiaomi says it sued US defense and treasury departments to protect its business

Xiaomi recently filed a lawsuit against the U.S. Treasury and Department of Defense in its bid to overturn the decision to blacklist the company. The Chinese smartphone manufacturer wants its name removed from the Communist Chinese military company list that was created during Donald Trump’s administration.

The ongoing U.S. and Xiaomi saga is escalating, and it seems that the end is nowhere in sight. Xiaomi was branded as the Chinese military company when Trump signed Executive Order 13959 in November 2019. The EO stated that Americans are prohibited from investing or working with Chinese companies due to threats to the nation’s security; thus, the brand was also pulled out from the U.S. market.

Why Xiaomi sued the U.S.

Xiaomi has now taken a step to reverse the decision against them and sued under Joe Biden’s administration. As per Reuters, the smartphone maker stated that its decision to file a complaint in the U.S. to protect its interest.

Xiaomi further said that the US’ move to list them as a “communist Chinese military company” was wrong and saying, it was “factually incorrect.” The company added that they were denied legal, due process, and this is another reason why they are asking the US court to declare the decision illegal.

The lawsuit was filed at a district court on Jan. 29. It has also named Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen as defendants.

"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 Daily Tribune quoted a statement from Xiaomi.

Xiaomi declares non-affiliation with the Chinese military

In any case, Xiaomi has been pointing out that the company is not affiliated or co-owned by any individual or group that has links with the Chinese military. It stated that 75% of the company’s voting rights were handled by co-founders Lei Jun and Lin Bin and not other persons or entities.

“Xiaomi is not owned or controlled or otherwise affiliated with the Chinese government or military, nor is it owned or controlled by any entity affiliated with the Chinese defense industrial base,” the firm reiterated in the filing.