Xiaomi Department of Defense and the Treasury Department USin an attempt to be removed from the official list of Communist Chinese Military Companies (CCMC), which it was placed on by order of Trump in mid-January.
The Department of Defense added Xiaomi to the list after deeming the Chinese company “appears to be [a] political entity” aimed at supplying advanced technologies to modernize the Chinese military.
Xiaomi said it filed the lawsuitbecause its placement on the Communist Chinese Military Companies list could cause “immediate and irreparable harm to Xiaomi,” including cutting off access to U.S. capital markets.
Furthermore, according to the lawsuit, the restrictions will affect the company's business relationships and ability to conduct and expand its business, while there may be a serious blow to Xiaomi's reputation among business partners and consumers, both in the United States and around the world.
Since November last year, several companies have been added to the list of Communist Chinese Military Companies, under the order of Donald Trump. The order prohibits US from trading and investing in any of the listed companies.
Xiaomi is accusing the US government of placing the company on the list without providing an explanation. The Chinese company believes that its inclusion on the list and the subsequent restrictions are illegal.
He explained that more than 75% of the voting rights in the company belong to co-founders Lei Jun and Bin Lin and that several of Xiaomi's shareholders were American companies, such as BlackRock and Vanguard Group.
In mid-January, when Trump decided to make this move, Xiaomi officially announced that it had no connection with the Chinese military.
"The company confirms that it is not owned, controlled, or affiliated with the Chinese military, and is not a communist Chinese military company," Xiaomi said.
Other Chinese companies included in the list are: Huawei, Hikvision, Panda Electronics, Semiconductor Manufacturing International Corporation and Inspur.
Source: ZDNet
