Smartphone giant Xiaomi sues to reverse US blacklisting

Xiaomi’s stock price dropped more than 10 percent following the US blacklisting

Chinese smartphone maker Xiaomi said Sunday it had filed a lawsuit seeking to overturn the former Trump administration’s last-minute blacklisting of the electronics giant.

Xiaomi said it filed the appeal with a Washington federal court Friday after former president Donald Trump’s administration barred investment in the firm, saying the Beijing-headquartered company was a part of the Chinese military.

In a statement, Xiaomi said it “believes that the decision … was factually incorrect and has deprived the company of legal due process.”

“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 statement added.

Just six days before Trump left office, his officials made a series of announcements targeting Xiaomi and other Chinese firms including state oil giant CNOOC and embattled favorite TikTok.

Xiaomi—which overtook Apple last year to become the world’s third-largest smartphone manufacturer—was one of nine firms the Pentagon classified as “Communist Chinese military companies.”

The measure was seen as an attempt to cement Trump’s trade war legacy with China after four years of turbulent relations with Beijing.

The blacklisting means US investors cannot buy Xiaomi securities.

The ‘s dropped more than 10 percent following the blacklisting.

US blacklists Xiaomi, CNOOC, Skyrizon, raising heat on China

© 2021 AFP

Smartphone giant Xiaomi sues to reverse US blacklisting (2021, January 31)
retrieved 31 January 2021

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