Smartphone giant Xiaomi files lawsuit to reverse U.S. blacklisting

Smartphone giant Xiaomi files lawsuit to reverse U.S. blacklisting

Xiaomi said the USA decision to include the company as a "communist Chinese military company" was "factually incorrect" and said it had asked the courts to declare the decision illegal. As per the blacklist, all American investors need to sell their investments in Xiaomi by November 11, 2021. That was five days after the Trump administration ordered that Americans divest themselves of any investments in Xiaomi. The Chinese smartphone manufacturer wants its name removed from the Communist Chinese military company list that was created during Donald Trump's administration.

The company filed a lawsuit last Friday in Washington, D.C., asking a judge to block a ban that would bar US investors from trading in Xiaomi's stock effective March 15.

Previously, on January 14, former U.S. President Donald Trump added nine Chinese companies to the ban list, including two state-owned airplane manufacturers, Commercial Aircraft Corporation of China (COMAC) and China National Aviation Holding.

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In their lawsuit, Xiaomi's lawyers state that the company will suffer immediate, serious and permanent damage if the listing remains in force and the resulting measures take effect. The company said it is an "independently managed corporation" that supplies electronics "solely for civilian and commercial use" and is not owned by or affiliated with the Chinese government or military. The second project was placed on the US Department of Commerce list, which means that it can not use American technologies and cooperate with American companies without the consent of the authorities of this country.

It explained that more than 75% of the voting rights in the company are held by co-founders Lei Jun and Bin Lin and that various Xiaomi shareholders were USA companies, such as BlackRock and The Vanguard Group. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Chinese chipmaking giant Semiconductor Manufacturing International Corp, Shenzhen-based drone maker SZ DJI Technology Co are also among the companies that have been blacklisted.

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