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Xiaomi Lines Up for U.S. Court Date to Challenge Trump-Era Ban

By Yang Ge / Feb 02, 2021 01:06 PM / World

Smartphone maker Xiaomi is joining a growing queue of Chinese tech firms fighting Trump-era bans against them in U.S. courts.

The company filed a lawsuit last Friday in Washington, D.C., asking a judge to block a ban that would bar U.S. investors from trading in Xiaomi’s stock effective March 15. Xiaomi was named to a U.S. Defense Department list last month accusing it of having ties to China’s military, which meant American investors could no longer trade in its shares based on conditions laid out in an earlier Trump executive order.

In its lawsuit, Xiaomi says its inclusion on the Defense Department list “did not provide any explanation for (the department’s) decision to designate Xiaomi as a (Communist Chinese military company), let alone identify the factual basis on which the designation was based.”

Xiaomi reiterated it is a private company that is “not owned or controlled by, or otherwise affiliated with the Chinese government or military,” and asked a judge to provide injunctive relief to halt a ban that could cause the company “immediate and irreparable harm.”

In taking the action, Xiaomi has become the latest Chinese firm turning to the U.S. courts in an attempt to block Trump-era prohibitions those companies believe are illegal. Others taking similar action include instant messaging app WeChat and short-video app TikTok, both of which were banned over national security concerns; and Huawei, which was cut off from its U.S. suppliers after Washington earlier determined the company violated U.S. prohibitions on selling American products to Iran.

Read the full story here.

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