About two week ago, January 14 to be specific, the US government added 9 Chinese companies on the blacklist of so-called “relevant to the Chinese military”, including the smartphone maker Xiaomi.
According to the latest news, Xiaomi Group has sued the US Department of Defense and the Treasury for the US government’s restrictions on US investors’ investment, and requested the US court to declare it illegal for the US government to include it on the investment “blacklist”.
The Chinese company stated in a document submitted to the Federal District Court of the District of Columbia that if the aforementioned listing continues to exist and the restrictions take effect, “Xiaomi will face imminent, serious and irreparable losses.” The lawsuit also lists US Secretary of Defense Austin and Treasury Secretary Yellen as defendants.
On January 15, Xiaomi Group issued an announcement stating that it had noticed that the US Department of Defense issued a press release on January 14, 2021, stating that the company was included in the relevant list in accordance with Article 1237 of the National Defense Authorization Act of the 1999 Fiscal Year.
The Xiaomi Group stated in the announcement at the time: The company has always adhered to legal and compliance operations and abides by the relevant laws and regulations of the place of operation. Its services and products are for civilian or commercial uses mainly.
After the announcement, the official Weibo of Xiaomi Group “Xiaomi Company Spokesperson” announced that Xiaomi Company currently operates normally.
Not Only Xiaomi
As a reminder, the Pentagon last year started compiling a list of Chinese companies with alleged ties to the People’s Liberation Army after the White House put pressure on the defense department to comply with a 1999 law that had included the requirement. The Pentagon added the Chinese Apple to the blacklist on January 14.
The Trump administration then used the list as the basis for implementing an executive order that bars Americans from investing in such companies.