After going against Huawei, the United States government started targeting Xiaomi, and things escalated quickly.

A few weeks ago, the United States called Xiaomi a “Communist Chinese military company”. Despite Xiaomi’s clarification, it put the company on the investment blacklist, which prohibits Americans from investing in Xiaomi and those who already invested to withdraw their holdings.

The big names required to comply are Qualcomm Inc., Vanguard Group Inc., and BlackRock Inc.

Now, Xiaomi Corporation is filing a lawsuit in the Columbia district court against the United States Department of Defense and Department of Treasury to challenge the said blacklisting.

They also named Defence Secretary Lloyd Austin and Treasury Secretary Janet Yellen as the defendants.

As per Xiaomi, the blacklisting is unconstitutional. They may also face “imminent, severe, and irreparable harm” if the restrictions take effect and the designation as a Communist Chinese military company remains.

Now that a new administration has entered the White House, Chinese companies like Xiaomi — as well as Huawei and DJI (who are also on the blacklist) — may theoretically see a nicer treatment from the U.S. government.

Source: Bloomberg

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