Chinese smartphone maker Xiaomi has filed a lawsuit against the US Defense and Treasury Departments after being blacklisted by the US earlier this month. The company qualifies this blacklist as “unconstitutional” and wants a judge to reverse this decision. The petition further shows that US Secretary of Defense Lloyd Austin and Secretary of the Treasury Janet Yellen are being prosecuted.
According to Xiaomi, the decision results in “imminent, serious and irreparable harm if the designation remains in effect and the restrictions take effect,” according to Columbia court documents.
The electronics company reaffirms that it is not owned, controlled or otherwise affiliated with the Chinese government or military, or any other entity having any connection with the defense industry of China.
According to the United States, Xiaomi, which is considered the world’s third largest smartphone maker, has ties to the Chinese military. The blacklist is forcing American investors to give up their stakes in this company.
Under President Donald Trump, the United States took a tough stance on Asian businesses, citing national security reasons. The smartphone maker Huawei and the SMIC chip maker had previously been blacklisted. As a result, US companies could no longer supply them with technology unless they were explicitly allowed to do so.
Large Chinese oil company CNOOC has also been blacklisted. This is due to the conflict in the South China Sea, where besides China, many other countries claim parts of the sea. CNOOC is drilling in this area, which the Americans say amounts to “reckless driving. and belligerent “.