HomeNewsXiaomi files complaint against US Department of Defense for Blacklisting them

Xiaomi files complaint against US Department of Defense for Blacklisting them

Xiaomi said 75% of the company's voting rights, under a weighted structure, were held by co-founders Lin Bin and Lei Jun, with no ownership or control from an individual or entity affiliated with the military.

US government last month blacklisted Chinese smartphone maker Xiaomi along with 8 other companies with alleged links with the Chinese military. Now Xiaomi has filed a complaint in a Washington district court against the US Defense and Treasury Departments.

Xiaomi claims that the judgment “unlawful and unconstitutional” and said the company was not controlled by the People’s Liberation army. It added that the investment restrictions, which go into effect on March 15, 2020, would cause irreparable harm to Xiaomi.

The original decision was made by the previous United States Trump administration. After being blacklisted, US investors are now barred from purchasing shares and securities of Xiaomi and will have to divest their existing holdings in them by Nov. 11, 2021.

Xiaomi said 75% of the company’s voting rights, under a weighted structure, were held by co-founders Lin Bin and Lei Jun, with no ownership or control from an individual or entity affiliated with the military.

It added that a “substantial number” of its shareholders were U.S. persons, and noted three of its top-ten holders of ordinary shares were U.S. institutional investment groups.

The U.S. Department of Defense and the Treasury Department did not immediately respond to requests for comment.

Reuters

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